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

The dollar rally has been taking a breather, with EUR/USD, GBP/USD and AUD/USD consolidating. Are we set for another leg lower before long?

EUR/USD consolidating at Fibonacci support

EUR/USD is gradually regaining ground above the 61.8% Fibonacci retracement, with the price slowing the decline that has been so evident over the past fortnight.

To the upside, trendline resistance has been respected thus far, and should be watched closely as a near-term resistance level of note. Ultimately, a more bullish picture would come with a break through $1.2031 resistance. As such, watch for a break below $1.1936 or above $1.2031 as a guide on where the pair goes next.

GBP/USD consolidation likely to break lower

GBP/USD is trading largely sideways, with lower highs providing us with a descending triangle formation.

With a clear downtrend behind us, there is a strong chance we will soon turn lower once more. To the downside watch out for a break below $1.3537 to continue the downtrend. Otherwise, watch for the $1.3629 swing high as a signal that a more bullish short-term phase is coming into play.

AUD/USD weakening from Fibonacci resistance

AUD/USD has been gaining ground throughout the week, with the price breaking through trendline resistance.

However, with the price starting to weaken from the 76.4% retracement, there is a chance we will see the wider bearish trend come back into play soon enough. The key to that would be a break below $0.7500 to negate the recent gains. Alternately, a break above $0.7589 would bring about a more bullish outlook for the pair. 

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