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

Renewed USD strength continues to make itself felt across a number of currency pairs.

EUR/USD
Source: Bloomberg

GBP/USD  
A heavy down day yesterday for the pair leaves it hovering close to the lows for the month. For the moment the 100-day simple moving average ($1.5471) is providing some support, with the 200-day at $1.5371 behind it. Beyond that, we are looking at a move back towards the June low near $1.52. Any bounce has to get back to the 50-day at $1.5609, and then move on to challenge $1.58 once again.

GBP/USD

EUR/USD
The decline in EUR/USD has been almost as rapid as its ascent last week. It now finds itself testing the 200-day SMA at $1.1320, with daily stochastics firmly bearish. A break below the 200-day would head towards $1.1220, the highs from 12 August, with the 50-day SMA at $1.1083 the next target.

EUR/USD

USD/CAD
It looks like the rally here has come to an end, as the pair falls towards C$1.32. First-line support is expected to be found around C$1.3140, with a further move lower bringing C$1.30 into play.

Daily stochastics are on the verge of turning lower, which will reinforce the bearish case, while a more sustained drop will test the rising 50-day SMA at C$1.2882.

USD/CAD

USD/JPY
The dollar is looking to build on yesterday’s surge against the yen, as it heads towards the 200-day SMA at Y120.75. With the rising price backed by daily stochastics, it would seem that dips are there to be bought. 

USD/JPY

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