FX levels to watch: EUR/USD, GBP/USD and AUD/USD
The dollar is coming into the fore in early trade this week, with EUR/USD, GBP/USD, and AUD/USD all looking likely to see further downside from here.
EUR/USD consolidates amid deep retracement
EUR/USD managed to rally into and past the 76.4% retracement last week, with the price continuing to consolidate around that area today.
The ability to break through the $1.1265 is key to determining whether we are seeing the beginning of a wider bullish phase. Until then, there is a good chance we could start to turn lower from here as the price breaks down through trendline support.
GBP/USD turning lower in continuation of recent losses
GBP/USD is weakening once more, following in from a week of downside just gone.
The gains we saw throughout the latter part of last week are seemingly a precursor to further downside, with the pair looking set to break lower. A move below the $1.2991 swing low would provide us with the bearish signal that sends the pair on its way for a likely next leg lower.
AUD/USD falling back into key support level
AUD/USD has been in consolidation mode over the past fortnight, with the pair exhibiting lower highs and largely flatlining lows during that time.
We are seeing a return to that $0.6962 support level this morning, with the reaction to that level likely to prove key to the outlook for the pair. Watch for a break and close below that level to provide a signal that the bearish trend is set to kick in once more. On the flip side, continued respect of that support zone would point towards a rise back into trendline resistance.
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