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

Gains for EUR/USD and AUD/USD could point towards further upside to come. However, with long-term uptrends in place, another leg lower always seems to be around the corner.

EUR/USD drifts lower after recent rebound

EUR/USD is moving lower, following on from a rebound in the second half of last week. With such a clear downtrend in play, there is always a strong likeliness of further downside to come.

However, with the break above $1.1428 on Friday, there seems to be a heightened chance of a stronger short-term rebound. A break back below the $1.1300 mark would signify a continuation of the downtrend. However, until then, there is a strong chance we will see the pair gain further ground, if only to retrace more of the sell-off from $1.1628.

GBP/USD consolidating after recent decline

GBP/USD has been gradually gaining ground over recent trading days, with the price seemingly retracing the decline from $1.2828.

However, given the upside break in EUR/USD, there is a chance that we are going to see a more protracted move to the upside. A rally through $1.2828 would be required to bring about this more bullish short-term view. Until then, there is a good chance we will see the pair turn lower again soon enough.

AUD/USD rally could bring shorting opportunity

AUD/USD has been gaining ground since the middle of last week, with the pair approaching the 50% retracement of the $0.7453-$0.7202 decline.

This upside looks likely to persist for now, with a rally above the 61.8% Fibonacci retracement looking likely. Such deeper retracements could provide a strong chance to look for the next short in AUD/USD. Unless we see the price rally through $0.7453, any short-term upside is seen as an opportunity to sell the pair.  

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