FX levels to watch: EUR/USD, GBP/USD and AUD/USD
The Fed’s dovish turn has pulled the rug out from underneath the US dollar, and given a lift to EUR/USD. Cable, however, remains weak as concerns grow over a possible extension to Article 50.
EUR/USD shoots higher after Fed
Yesterday’s Federal Reserve (Fed) meeting provided the spark to send the euro rallying, and crucially the price of EUR/USD was able to move above the February peak above $1.14.
A short retracement may provide the chance for a buying opportunity. Further gains will target $1.1516 and then $1.1554.
GBP/USD kept down by Brexit fears
A bearish turn seems likely here, as the GBP/USD price drops below $1.32.
Further declines target rising trendline support at $1.307, while trendline resistance from the highs of last week would suggest a rally towards $1.325 would provide another selling opportunity.
AUD/USD stuck at trendline and horizontal resistance
The price of AUD/USD has rallied sharply, but it has run into trendline resistance from the January highs, and also encountered horizontal resistance at $0.716.
A close above these two levels would mark a bullish development and bring $0.72 into play to begin with. A failure to break higher would suggest a move back towards $0.70.
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