Key USD Majors Test Critical Support and Resistance Levels

GBP/USD is testing critical support levels as the new month begins, with the 2026 low-week close and the 38.2% retracement of the 2025 advance converging at 1.3194. This level is significant as it marks the lower bounds of a 3% trading range that has been in place since March. A break and weekly close below this support could signal a resumption of the late-August downtrend. Initial resistance is noted at the monthly open around 1.3264/73, with key resistance at 1.3298-1.3302. A breach above this threshold would suggest a more significant near-term low and potential trend reversal.

AUD/USD has rebounded over 1% after finding support at the 88.6% retracement of the June advance and the 25% parallel of the September pitchfork at 6908. The focus is on whether the bulls can establish a more durable low, as the recovery approaches downtrend resistance. Key resistance levels are identified at 7008 and 7032, with a breach above these levels needed to indicate a larger reversal. A break lower could resume the downtrend, with subsequent support objectives at 6865 and 6822/33.

USD/CAD is testing major Fibonacci resistance at fresh yearly highs after an extended rally. The advance has been flagging bearish divergence, suggesting potential vulnerability at current levels. Key resistance is noted at 1.4292, with a breach above needed to fuel further advances. Initial support rests at 1.4235/39, with a break below suggesting a more significant high is in place. Economic data releases, including Canada employment data and the University of Michigan confidence surveys, will be closely watched for further guidance.