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

Dollar strength is on the up again, providing a bearish outlook for EUR/USD, while the bounce in the pound appears to have run its course.

Source: Bloomberg

EUR/USD tiptoes lower

EUR/USD is exploring the area below $1.16, as it creates a new low for the month. The first downside target would be $1.1489.

Rallies have been firmly sold since mid-September, so any retracement that stays below $1.17 would be another chance for sellers. Even a push back towards $1.18 would still mark a lower high in the current downtrend off the September high. 

GBP/USD rally fizzles out

The GBP/USD rally from last week’s lows has stalled for now, running to $1.3180 and creating a new lower high.

If the move gathers strength, $1.3050 is the target, with a move below here opening the way to $1.28. A turn higher would perhaps signal that bulls are regaining control, with the $1.3268 and then $1.3341 areas potential zones of resistance.

AUD/USD turns down again

The bears look to be in control of AUD/USD again, sending the price back towards the bottom end of the zone around $0.7640.

Below here the $0.75 area comes into play. Rallies have been sold over the past week, so a break above $0.7750 is needed to reverse the current bearish outlook. 

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