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

GBP/USD is the big outperformer, as a breakthrough in Brexit negotiations push the pair higher. Meanwhile, EUR/USD and AUD/USD have both been moving lower, with the dollar regaining ground.

EUR/USD breaks below Fibonacci support

EUR/USD has tumbled past the 76.4% retracement this morning, threatening to negate the gains seen over the past month.

The key signal we would need to see for such a bearish shift to occur, would be a break below $1.1712. Until then, there is still a good chance we could see this market regain ground to continue the creation of higher highs and higher lows. 

GBP/USD breaks higher following Brexit breakthrough

GBP/USD has pushed higher overnight, following a breakthrough in Brexit negotiations between the UK and EU. The likely commencement of trade talks this month should provide some near-term upside.

A break above $1.3520 would point towards a rally into the $1.3550 resistance. Should GBP/USD manage to break and hold above that level, we would be looking at the possibility of a return to the $1.3659 resistance level. On the flipside, a break below $1.3453 would point towards a retracement of the $1.3321-$1.3520 rally. 

AUD/USD breaks key support to return to bearish trend

AUD/USD managed to break below $0.7551 on Thursday morning, bringing the pair back into a bearish medium-term picture.

This means the short-term picture now conforms with the wider bearish picture, unless $0.7654 is broken. The immediate picture shows clear lower highs and lower lows, which provides a continued bearish picture. Thus, as long as we do not break above $0.7530, then a bearish short-term picture is in play. 

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