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

There are mixed messages across a number of FX pairs, with a Brexit breakthrough providing a bullish signal for GBP/USD despite a more bearish outlook for AUD/USD.

EUR/USD ascent slows as we head into key resistance

EUR/USD has been trying to rally through the Tuesday peak of $1.1733, with the pair pushing towards the crucial bullish breakout level of $1.1746.

So far, however, we have failed to break either of those levels, which points towards a potential period of weakness. A break below $1.1651 would signal an impending bearish phase, with a bullish short-term trend remaining in play until then.

GBP/USD breaks through resistance after Brexit breakthrough

GBP/USD managed to rally through trendline and horizontal resistance ($1.2936) this week, with an apparent breakthrough in Brexit negotiations leading to gains for the pair. With the ascent slowing, there is a chance we could soon see some form of retracement.

However, until we break below $1.2799, there is a good chance that any such drop is a retracement rather than bearish reversal. With Brexit negotiators, Dominic Raab and Michel Barnier, meeting tomorrow, GBP/USD is likely to be heavily impacted further as the week goes on.

AUD/USD continues to weaken following breakdown

AUD/USD has been moving lower following a fall below the $0.7307 swing low earlier in the week. The pair has a clearly defined downtrend, which should remain unless we see a rally through the $0.7362 mark.

On the flip side, with higher lows and lower highs in play over the past fortnight, a drop below $0.7237 would provide greater confidence of another bearish breakdown for the pair.

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