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

The dollar rally appears to be abating, with EUR/USD and AUD/USD gaining ground. Meanwhile, with GBP/USD heading towards the upper end of its range, there is reason to believe we will see upside to come should the price break higher.

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EUR/USD regaining ground after trendline break

EUR/USD seems to be moving into a more bullish phase, following on from the declines evident throughout the final week of April and the first week of May.

The break through trendline resistance has set the pair on its way to the current gains, with the creation of higher highs and higher lows key to providing a bullish short-term view. As such, a bullish view remains while the price is above Friday’s swing low of $1.1891.

EUR/USD price chart

GBP/USD consolidation continues as we await breakout

GBP/USD continues to move sideways following on from a period of downside that lasted through the second half of April. With the price having traded largely sideways for over a week now, there is a chance we could see the pair start to turn into a more bullish phase should the breakout come to the upside.

With that in mind, watch for a break through $1.3618 as a potential bullish signal. However, with the recent price action taking on a broadening formation, it makes sense to also look out for trendline support and resistance.

GBP/USD price chart

AUD/USD testing key resistance level

AUD/USD has managed to rebound sharply after breaking below a wider head and shoulders neckline. The key to this recovery was always going to be centered on the ability to break above the $0.7561 swing high.

With the price challenging that resistance level since Friday, the ability or inability to break above here will provide us with a clear short-term bias for the pair. 

AUD/USD price chart

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.