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

Dollar strength drove price action over the last two weeks, and now its weakness could provide the impetus for the coming week.

Euro and dollar notes
Source: Bloomberg

GBP/USD may tempt buyers

If dollar weakness persists then we may see cable stage a turnaround.

A close above the 50-day simple moving average (SMA) –currently $1.2499 – would likely bring out fresh buyers, and see the pair target $1.2650.

Above here the next target is $1.3445. 

EUR/USD looking firmly bullish

A bottom is firmly in here, at least for now. Having held above $1.0525, which was flagged last week, the price has found firm bullish momentum.

While some intraday weakness is possible as the US returns in earnest, it looks like dip buying is the way to go here. Further targets on the upside lie around $1.0714 and then $1.0825.

Only a drop back below $1.0590 negates the bullish outlook.

USD/JPY resistance may become support

Friday’s price action saw the pair fall back from near Y114, and the downside has gathered pace today. Previous resistance at Y111.44 may now become support, but a close below here could see a swift drop in the direction of Y107.50.

A close higher today would see another test of descending resistance off the February high, and clear the way towards Y116.85.

AUD/USD has gains in store

Overnight weakness was met by furious buying, so it looks like we are set for more gains here.

The next target is the 200-day SMA (currently $0.7522), and then above here the next target is the 50-day SMA (currently $0.7588).

The rising hourly trendline at $0.7450 could provide support if we have some intraday weakness. 

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