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

It looks like EUR/USD is turning lower after attempting to break key resistance, while the Aussie seems primed for more weakness versus the US dollar.

GBP/USD forex pair
Source: Bloomberg

It has been a good month for GBP/USD bulls
The bulls can look back on a good performance this month, but the pair still has to break the key $1.4668 area we highlighted earlier in the week. If it is able to push on then we look to the 200-day simple moving average (SMA) at $1.4881.

With month-end looming it makes sense to wait for another dip in the trend, rather than chasing the rally, but as long as the pair holds above $1.45 we expect further gains. 

EUR/USD still trending higher
So far this morning an early spike above $1.14 has been stymied, and with the intraday chart overbought we could see a reversal. In this case, we would look to support at around $1.13.

But with the currency pair trending higher on the daily chart, dips are likely to be short-lived, and should be viewed more as buying opportunities.

It would take a close below $1.12 to cancel out the current bullish outlook. 

AUD/USD momentum may have stalled
The price is heading towards the rising trendline of the daily chart (the trend that began back in January), along with the rising 50-day SMA ($0.7535), which may indicate a turn higher could be upon us soon.

However, for now it looks like bullish momentum has stalled, so traders could take the opportunity to sell into strength, with a first target on the downside of $0.7550, and then on down towards $0.75. 

USD/JPY shorts could unwind
It makes sense to treat this pair with kid gloves, but the definitive move below ¥108 means any bounce in coming sessions is likely to be viewed as a selling opportunity.

Current oversold conditions on the intraday chart, plus month-end mean we may see an unwinding of USD/JPY shorts that could push the pair higher in the short-term.

Resistance is likely to be found around ¥108 and then ¥108.70.

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