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

EUR/USD and GBP/USD look set for further upside, while AUD/USD is bucking the trend as the pair continues to drift lower.

EUR/USD consolidating after recent ascent

EUR/USD has been retracing gradually off the back of the strong ascent seen over the past fortnight. The shallow nature of this decline points towards a likely break higher before long, with a rally above $1.1718 indicating further upside to come.

Ultimately, we would need to see a break through $1.1746 to provide greater confidence of a wider recovery for the pair. However, until $1.1718 is broken, further downside could still come into play to maintain this current drift lower.

GBP/USD looks set for further upside

GBP/USD is starting to show signs of life following the shallow retracement seen yesterday.

Given the sharp rally into this short retracement, there is a good chance we will see further upside to come. However, watch for an hourly close above $1.3043 as a bullish signal for another leg higher.

AUD/USD falls into key support level

AUD/USD has been drifting lower, with the pair looking likely to break from the consolidation seen over recent weeks. The creation of higher lows alongside lower highs has previously indicated the existence of a symmetrical triangle.

However, should we see a break below $0.7237, then this would point towards a potential breakdown in the direction of the wider bearish trend. Until then, there is still a chance of a rebound, given the potential for a bullish break in EUR/USD and GBP/USD. 

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