FX levels to watch: EUR/USD, GBP/USD and AUD/USD
A surge for the dollar has seen EUR/USD, GBP/USD, and AUD/USD all turning lower in early trade. With key support levels down below, further short-term downside could have wider implications.
EUR/USD reverses lower after recent ascent
EUR/USD looks to have completed its period of upside, with the break below trendline support pointing towards a possible return of the wider bearish trend.
The upside seen throughout much of last week always looked like a potential retracement of the selloff from $1.1514. As such, a bearish outlook is in place unless we see a break through the $1.142 peak seen yesterday.
GBP/USD drifts lower after recent ascent
GBP/USD has been moving lower in the second half of the week, with the pair returning to the $1.3218 peak from late January.
The ability to break through the recent swing-low of $1.3233 and that $1.3218 peak will be key in determining whether this retracement is going to be fleeting, or longer lasting.
AUD/USD falls into key support
AUD/USD has continued its decline, following a rally into the 61.8% retracement level earlier in the month. The failure to create a new higher high, and subsequent fall below $0.7142 points towards a likely continuation of the wider bearish trend, which appears to be playing out.
However, the final hurdle remains, with a break below $0.7070 key to determining whether we are back into that bearish wider trend or post another higher low. Should we see that level broken, we would likely see another leg lower from here.
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