FX levels to watch – EUR/USD, GBP/USD, AUD/USD

Dollar weakness took a breather yesterday thanks to a stronger PMI figure, but it appears to be back this morning. 

EUR/USD fails to push higher

EUR/USD’s downtrend line from the highs of 2 January continues to hold. We have seen rallies so far this morning peter out around $1.2040, so a close above here on the hourly chart would signal a wider bullish move.

If the trendline continues to hold, the lows of the week just above $1.20 would come into play. The rising trendline from the December lows has yet to be tested, with this requiring a move down towards $1.1970.

GBP/USD aims for a rebound

GBP/USD buyers have come in to defend the $1.35 level over the past week.

Further upside momentum this morning comes ahead of the vital services purchasing managers index (PMI) number. Additional gains will target $1.3550, and then on to $1.3613. 

AUD/USD keeps on moving higher

AUD/USD continues to march higher, having hit its highest level in over two months yesterday. The next areas to watch on the upside are $0.7877 and then $0.7897.

Meanwhile, the upward trend comes in as support around $0.7807, but a move below $0.7750 is needed to put a more bearish perspective on the pair.

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