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

It looks like the euro is losing steam again against the pound, while an overnight bounce in AUD/USD has been used as an opportunity for fresh selling. 

Pound sterling coins and dollar note
Source: Bloomberg

EUR/GBP gains stall

Gains have stalled at the 50-day simple moving average (£0.8432), and with yesterday’s drop lower the advantage would seem to lie with the sellers. Further bearish pressure would suggest a drop down to £0.8344, the lows of early August.

With the pair currently oversold intraday, a bounce cannot be ruled out, although it will need to clear £0.85 to indicate real upward momentum is in evidence. Above this, £0.8563 and then £0.8650 would be the areas to watch. 

AUD/USD rallies

The pair saw a textbook rally overnight to the 50-hour SMA ($0.7555), with the sellers taking control once again. We now look to the $0.75 low from yesterday’s session, which was also key support from the end of August.

A further drop would head towards the $0.7420 zone, last seen in late July when the last dip in AUD/USD was furiously bought. The inclination here would be to remain short unless the pair breaks through $0.76. 

USD/JPY still controlled by sellers

Yesterday’s session proves the sellers are still broadly in control, with the pair back below the year’s downtrend line. We now look to see if IN_USDJPY can push below ¥101.15, which would then clear the way to a test of ¥100.

Moves higher on the hourly chart ran into resistance around ¥102, which also coincides with the 100-hour SMA. A move through here would head towards the 200-hour SMA at ¥102.65, which also lies around the key 2016 downtrend line. 

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