The week has begun on a quiet note, as markets prepare for the Fed decision on Thursday. 

A pound coin atop a US dollar note
Source: Bloomberg

GBP/USD momentum indicators still positive

The bounce goes on in cable, having seen over 200 points added in just over a week. Daily stochastics and the RSI are still pointing higher, with a first target around the 50-day SMA at $1.5526. A move through here targets the August high at $1.58, with dips likely to be bought along the way. A topping out of momentum might see us move back towards support at the 200-day SMA at $1.5350. 

EUR/USD recovers lost ground but progress pauses

A steady bounce in the euro has meant that much of the ground lost in late August has been recovered. Momentum so far this morning has stalled at the $1.1370 area, but this may be another dip, with possible support around the $1.13 level. If this is broken then we look towards the 200-day SMA at $1.1240. 

AUD/USD stochastics still bullish

The pair is consolidating around the $0.71 level this morning with buyers coming in around $0.7070 level. A bounce from here would target the high overnight around $0.7130, and then on to $0.72. Daily stochastics and RSI remain bullish, so buy on the dips appears to be the approach here.

USD/JPY heading backwards

Momentum stalled at the 200-day SMA (¥120.90) last week, and since then we have seen the pair turn southwards. The ¥120 level is the next area of support, marking the lows from last Thursday, with a move below here heading towards ¥119.70 and then ¥119.  

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