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FX Levels to Watch – EUR/USD, GBP/USD, AUD/USD

A quieter morning has seen little movement so far on FX markets, but the bearish picture for EUR/USD remains broadly intact. 

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Australian dollar
Source: Bloomberg

EUR/USD continues this week’s pattern

EUR/USD bulls have defended $1.1109 all week, but another overnight rally off the lows is being met by fresh selling. This has been the pattern all week, even if the selling tends to subside above $1.1109.

A close below here would still suggest a push to $1.10.

GBP/USD dependent on BoE comments

GBP/USD has been at the mercy of comments from the Bank of England (BoE) members this week, but yesterday we saw the $1.2616 level defended.

The bounce petered out at $1.27, so this gives us two clear levels to work with in determining the next move. Below $1.2616 the $1.25 level comes into play, and a rally back above $1.27 would test $1.2846 and then $1.2965.

AUD/USD still declining

The price of AUD/USD continues its decline, but retracements have been fairly shallow thus far. The 200-day simple moving average (SMA) at $0.7529 is now in view, with buyers needing a move back above $0.7580 to suggest that the trend has changed direction.

A firm break below $0.7478 would raise the prospect of a move to $0.7434 or down to $0.7364.

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