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

Dollar strength continues to make itself felt, while the euro is looking to regain lost ground against sterling.

Euros and pounds
Source: Bloomberg

EUR/GBP controlled by the euro bulls

A spike higher to £0.8740 then brought out fresh sellers, but despite a drop in the early part of the session it looks like the euro bulls are in control here.

We need to see a recovery back above £0.87 to confirm strength, but so far in the past week, buyers have steadily lifted EUR/GBP, with higher lows indicating bullish momentum. Bears would likely seize control if the price fell below the £0.86 level.

EUR/USD in the lows

The steady trend higher since early March reversed for EUR/USD at the beginning of the week and there seems little sign of any buyers returning here. Indeed, yesterday’s lows around $1.0750 are now under threat, with a further fall threatening the $1.0714 level and opening the way to lows in the direction of $1.06 and $1.0520.

Bulls will have to hope that the rising trend from the December lows holds, which would suggest a bounce on the daily chart around $1.06.

AUD/USD still dominated by the buyers

The bullish reversal for AUD/USD earlier in the week suggests that buyers still have the upper hand, but the price needs to move above $0.7680 to avoid giving the impression that a lower high is being created.

A move through $0.7680 would suggest that another retest of the $0.77 area is possible, while bears will want to see a close below the rising trendline off the December lows. This would require a drop below $0.76. 

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