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

Risk currencies are seeing some strength this morning, although concerns about a trade war are limiting gains.

EUR/USD strength persists

The Italian election result pushed EUR/USD down towards $1.2165, but the price has rebounded since then. It has moved above $1.2323 and will now target $1.25.

However, this may take some time, as momentum on the four-hour chart is now overextended and near-term upside may be limited. But, any pullback that holds above $1.2165 would represent a buying opportunity, as the wider bullish EUR/USD trend persists.

GBP/USD rallies but stuck in near-term fall

We saw the price push higher yesterday, but GBP/USD established a lower high last week that indicates remaining bearish momentum.

The near-term downtrend remains, and it will need a move above $1.4070 to reverse this. A decline will target $1.37, and then $1.3659 and $1.3613.

AUD/USD holds vital support

AUD/USD has managed to hold $0.7748 over the previous three sessions, but an attempt to push higher has so far been defeated.

Below $0.7748, $0.7694 and then $0.7654 come into play as possible support. A rally will target $0.7807, and then on to $0.7835. Bulls will need a close above $0.79 to break the sequence of lower highs.

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