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

EUR/USD, GBP/USD, and AUD/USD all regain ground in a signal that we could be set for a period of upside against the dollar.

EUR/USD attempts to regain ground

EUR/USD is once again pushing higher, following on from a trendline break seen last week.

Should we see a push through the $1.1724-$1.1750 resistance zone, there is a heightened chance that we will see further upside come into play. A break above that zone would point towards a potential retracement of the sell-off between $1.1996 and $1.1509.

GBP/USD showing signs of bullish resurgence

GBP/USD has managed to break through the $1.3348 swing high from Thursday, following on from the failure to create another lower low last week.

This provides a bullish short-term outlook for the pair, with further upside looking likely as we move into a deeper retracement. There is a good chance that this upside is only a short-term phenomenon, with a shift into the 61.8% or 76.4% expected before we turn lower once more. The difficulty comes in deciding whether we will be retracing the recent $1.3618-$1.3209 or else the $1.4376-$1.3209 wider decline. For now, we are looking at a potential short-term rally, thus pointing towards a move towards $1.3459-$1.3520 Fibonacci resistance. We would need a break below $1.3253 to bring about a more bearish outlook.

AUD/USD rallies into trendline resistance

AUD/USD has managed to start the week in a positive fashion, following a strong retail sales figure overnight.

That has taken us into a line determined from the peaks on 4 and 22 May. With the price turning lower from there, we have a strong chance of a pullback. However, this looks like another potential short-term period of downside until we move higher to continue the recent resurgence. With that in mind, as long as the price remains below trendline resistance, there is a strong chance of short-term downside, if only to take a breather in this rally. 

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