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

The dollar is under pressure, with EUR/USD, GBP/USD and AUD/USD all moving higher. Is this the beginning of a wider bullish move for the pairs?

EUR/USD rallies into crucial resistance level

EUR/USD has rallied into the $1.1721-$1.1727 resistance zone this morning, following a week of upside for the pair. This is a major region of resistance, which will determine the bias for the short term.

With the top of a rising wedge also joining this confluence of resistance, there is reason to believe that we could be looking at the beginning of a sell-off from here. As such, a bullish picture would only come with a rally and close above $1.1727. Until then, there is a chance we could see some weakness come into play.

Is GBP/USD a retracement of bottom?

GBP/USD has also been gaining ground, with the price breaking past the 61.8% area and testing levels above the 76.4% ($1.3252) area.

The $1.3315 level is going to be key here for the pair, with the wider bearish trend providing a distinct possibility that we will see a move lower from here. However, should we see the price break above the $1.3315 level, we would be provided with a more bullish short-term outlook.

AUD/USD showing signs of bullish resurgence

AUD/USD has rallied back into the $0.7409 resistance level, following a rally above that level on Wednesday.

We are clearly seeing signs of strength coming into play, yet we want to see a break above the $0.7444 level to provide greater confidence of a bullish breakout. Until then, watch for a potential respect of the 76.4% retracement at $0.7415.

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