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

A new Brexit poll this morning puts fresh strength into sterling, while the Aussie continues its woeful performance. 

EUR/USD forex pair
Source: Bloomberg

The drop back from the highs of last week continues, but for now the $1.14450 support area is preventing further downside. However, the pair needs to push on above $1.45 and then $1.4550 in short order to avoid fresh downside and a move back to the rising trendline from the March lows.

If further selling does develop then support may enter the fray around $1.4367, the 50-day simple moving average (SMA), and then below this the trendline comes in around $1.4340.

An early gain for this pair indicates the rising trend from last week is still in full swing. The next target is, once again, the $1.4670 area, and if it closes above here then the next area to watch will be the 200-day SMA at $1.4783.

Only a move below $1.44 would negate the current bullish outlook.

Further comments overnight have sent the pair crashing below the $0.72 area, with the outbreak of fresh bearish momentum taking us rapidly towards $0.71 and then down towards $0.70.

It looks like selling on the rallies is still the main approach to take here, so as long as the pair doesn’t move back above $0.73, any rally should be taken as an opportunity for further short positions.

The drop back below ¥111 adds further to the idea that we may be seeing an end to the current bounce off the May lows, with the longer-term downtrend reasserting itself.

So long as the pair holds below ¥111 then the next target will be the area around ¥108. It would take a firm close above the high from Monday, and even then bulls will need to get the price firmly above the late April high of ¥112. 

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