FX levels to watch – GBP/USD, EUR/USD, AUD/USD. USD/CAD

Fed minutes have put markets on notice for a June move, so the losses in EUR/USD look set to continue, while the USD/CAD rally has entered a new phase.

GBP/EUR forex pair
Source: Bloomberg

GBP/USD surges on Brexit news
Yesterday’s Brexit poll, which gave a healthy lead to the ‘Remain’ campaign, was the cue for another surge in cable, with only a modest pullback seen thus far this morning. Three days of gains have turned the pair bullish, so dips should see buying as and when they appear.

The next target is $1.4668, the high from the beginning of the month, while beyond this the 200-day simple moving average (SMA) at $1.4804 still looms.

EUR/USD seems to have stablised
After heavy losses yesterday the pair has stabilised just above $1.12, but having opened below key support (now resistance) at $1.1223, it looks like further downside is on the way. We may see the pair head towards $1.1149, the 100-day SMA, or to the 200-day SMA at $1.11.

Any rally back towards $1.13 would start to look like a possible selling opportunity. It will need sustained price action back above $1.13 to turn the pair bullish.

AUD/USD primed to bounce
Rallies continue to be sold, as we saw on Tuesday, but with the pair oversold intraday a bounce back towards $0.73 could be the likely move. The low from the end of February, $0.71, is the next area to watch. 

USD/CAD in the bull’s hands
FOMC hawkishness has put more life into this rally, with the push above C$1.30 providing fresh bullish sentiment. The next target would be C$1.32, the high from early April, with the 200-day SMA at C$1.3357 the next stopping point. 

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