EUR/USD targets the upside
So far the euro has not taken advantage of USD weakness in the same way as sterling, but for the third day the $1.13 level has held, while for a second session the pair is holding above the 50-day SMA ($1.1309).
The first target on the upside would be $1.1387, and then on to the $1.15 area and the peak above $1.16 we saw towards the beginning of the month. Any close below $1.13 would return us to a bearish view, with the next area to watch being $1.1223.
AUD/USD bulls have an opportunity
The Reserve Bank of Australia’s unwillingness to cut rates has given the bulls the chance they were looking for, with the bounce off the 200-day SMA ($0.7260) providing a near-perfect alignment of technical and fundamental factors.
The general recovery in risk appetite is helping too, and now we look for a break above $0.74 to then suggest a sustained move towards $0.75, which was key support in March/April, is underway. Essentially, it will take a move below the 200-day to cancel out this bullish hypothesis.
USD/JPY continues to rally
A 300-point rally here is now heading towards the 50-day SMA (¥110.28); previous rallies to this indicator have run out of steam so far this year, so bulls should be careful, but dip buying may still prove successful.
A break above the 50-day would head towards the late April high at ¥112, while for the moment it looks as if it will take a move back below Y108 to negate the current outlook.