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

Today sees the last batch of heavyweight data before Christmas, which should provide key direction for the FX market.

Japanese yen and US dollar notes
Source: Bloomberg

GBP/USD decline appears to have halted

GBP/USD's sharp drop of the past week has come to a halt for now, with the $1.23 area acting as support over the past two sessions. A move below this level would head towards $1.2178 and then $1.1980.

It may be that the pair is bottoming out, but we will need to see a move above $1.2422 to suggest the buyers have the upper hand. Today’s US data splurge should help provide direction.

EUR/USD may have found its bottom

If the buyers can move above $1.0480 then we may have a bottom in pace. Buyers have come in around $1.0350 so this is the key support that bears will need to break to maintain downward momentum. Above $1.0480 the price could target the key $1.0525 level. 

USD/JPY seeks to restore upward momentum

The pair has drifted back from its high last week, but support was found yesterday around ¥117.14. The price now needs to clear ¥118.09 to maintain upward momentum, and then push on through ¥118.56. A bigger correction would begin with a push through ¥116.64.

AUD/USD aiming to stop its drop

The price is exploring $0.7220, with the current move lower needing a close below this level to indicate further losses are on the way. If $0.7220 holds then we could see a test of $0.73 and then $0.7325. 

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