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

US dollar strength has eased, but the overall weakness in EUR/USD and cable continues, and AUD/USD is in bullish mode. 

EUR/USD attempts to rally

EUR/USD has bounced off $1.1717, and is pushing higher in early trading.

Overnight gains stalled at $1.18, but above here $1.1822 and then $1.1840 come into play as near-term targets. A failure to hold above this latter level would likely constitute another selling opportunity.

GBP/USD recovers from Monday lows

GBP/USD has rallied off the $1.34 level, and now needs to move back above previous support at $1.3450.

If this now becomes resistance, a turn lower would target the Monday low at $1.3390. Rallies towards $1.3510 could also be another selling opportunity.

AUD/USD rally extends into second day

AUD/USD has seen a significant rebound after finding a bottom around $0.7450. Further gains will target the area around $0.7650 that formed support in late March.

The progression of lower highs from the 2018 peak at $0.8136 remains in place, so a longer-term move above $0.78 is needed to suggest that this downtrend has been broken. The recovery above $0.7450, which puts the pair back above the December low, reinforces the idea that momentum has turned positive here. 

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