GBP/USD moving below $1.57
Friday’s attempt to break through $1.58 did not work out well for GBP/USD, and with the price now moving back below $1.57 it looks like the sellers are back in control. Some short-term support around $1.5630 is possible, while a continuation of the downward move would head towards $1.55. The risk for bears is that we witness a consolidation period similar to December, but this time ending in a break to the upside as the trend reasserts itself.
EUR/USD could slip to $1.1280
The $1.15 level is still the target here that EUR/USD must clear. Upward momentum is still strong, and the current pullback may just run into the rising trendline at $1.1370, before pushing on. A failure to hold this rising trend would see a drop towards $1.1280, around the 200-hour simple moving average (SMA).
AUD/USD decline persists
The pain continues for AUD/USD longs, with the $0.80 level being challenged in the morning session. The next target is the 200-hour SMA at $0.7900, with further downside targets at $0.7950, then the mid-May lows around $0.7880 and then the monthly lows at $0.78. We would need to see a move back above the $0.8050 area to restore bullish momentum.
USD/JPY could move through Y120
A morning bounce here has taken USD/JPY back to the descending trendline, with resistance around Y119.80. If this area continues to be resistance then the likelihood is another move back towards Y119, but a move through Y120 would raise the possibility that a breakout is underway.