FX levels to watch: EUR/USD, GBP/USD and AUD/USD
A mixed picture across FX is seeing dollar weakness fade for the likes of AUD/USD. However, EUR/USD and GBP/USD are showing signs of the potential further upside.
EUR/USD regaining ground in another retracement rally
EUR/USD is rising in the wake of last week’s sell-off, with the pair seemingly set for another retracement phase.
The wider creation of lower highs and lower lows remains in place unless we see a break through the $1.1324 swing high. Thus, it makes sense to look out for further upside over the near term, with the pair expected to post a deeper retracement of the sell-off from $1.1324. A fall below $1.1145 would signal a continuation of the bearish trend rather than a continuation of this rally.
GBP/USD rallying towards crucial resistance level
GBP/USD is regaining ground after a fortnight of downside which saw a breakdown below the key $1.2963-$1.2967 resistance zone.
This current rally looks like a short-term rebound unless we see a move through that same $1.2963 peak which marks the most recent swing high and the March low. A move above there would point towards a bullish phase as we retrace the decline from $1.3133.
AUD/USD sell-off expected to return
AUD/USD has been regaining ground over recent days. However, with a wider bearish trend in play, there is a good chance that such upside is a retracement phase before we see further downside come into play.
With the price having dropped below the $0.7039 level, it looks likely we will see further downside over the near term. A rally through $0.707 would bring about expectations of further upside and wider retracement coming into play.
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