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

Negativity prevails across markets this morning, with fresh losses for the Aussie and further downward moves for sterling.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Pound coins and dollar notes
Source: Bloomberg

GBP/USD heads lower

Fresh Brexit polls continue to knock this pair, as the ‘Leave’ campaign appears to be moving into the ascendant. A recovery to $1.43 overnight has fizzled rapidly, and now we look to see if the pair can break yesterday’s low around $1.4115.

If it pushes on, the next area to watch would be $1.40, and then below this the February low at $1.3836 comes into prospect.

EUR/USD retreats

Yesterday saw a modest bounce in the middle of the day that recovered most of Friday’s losses, but then stalled at $1.13. As the new day has got underway the pair has retreated.

The next support lies around $1.1230, and below this the pair will head towards the rising trendline from December, potentially seeing support materialise around $1.1140. 

AUD/USD continues to drop

The downward move for AUD/USD appears to be gathering pace, after the small bounce yesterday.

A push through $0.7350 would likely see downside momentum accelerate, with the potential for a move back to the 200-day simple moving average (SMA) at $0.7267 in the first instance, and then down to the May low in the region of $0.7150.

It would need a close above the daily descending trendline off the April high, ie above $0.75, to reverse the current bearish impression.

USD/JPY heads towards lows of early May

The downward trend continues here, although the pair is somewhat skittish around ¥106, the lows of early May.

A break below here would then head towards the October 2014 low around ¥105.20, and then the risk is a swift dive to ¥102. A rally needs to get back above ¥106.50 to even begin to dent the bearish outlook. 

 

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.