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FX snapshot – GBP/USD, EUR/USD, AUD/USD, USD/JPY

The week has begun on a quiet note, as markets prepare for the Fed decision on Thursday. 

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.
A pound coin atop a US dollar note
Source: Bloomberg

GBP/USD momentum indicators still positive

The bounce goes on in cable, having seen over 200 points added in just over a week. Daily stochastics and the RSI are still pointing higher, with a first target around the 50-day SMA at $1.5526. A move through here targets the August high at $1.58, with dips likely to be bought along the way. A topping out of momentum might see us move back towards support at the 200-day SMA at $1.5350. 

EUR/USD recovers lost ground but progress pauses

A steady bounce in the euro has meant that much of the ground lost in late August has been recovered. Momentum so far this morning has stalled at the $1.1370 area, but this may be another dip, with possible support around the $1.13 level. If this is broken then we look towards the 200-day SMA at $1.1240. 

AUD/USD stochastics still bullish

The pair is consolidating around the $0.71 level this morning with buyers coming in around $0.7070 level. A bounce from here would target the high overnight around $0.7130, and then on to $0.72. Daily stochastics and RSI remain bullish, so buy on the dips appears to be the approach here.

USD/JPY heading backwards

Momentum stalled at the 200-day SMA (¥120.90) last week, and since then we have seen the pair turn southwards. The ¥120 level is the next area of support, marking the lows from last Thursday, with a move below here heading towards ¥119.70 and then ¥119.  

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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.