FX levels to watch – GBP/USD, EUR/USD. AUD/USD, USD/CAD

A key day dawns for sterling, while the euro is still pushing lower after commentary from Mario Draghi yesterday.

EUR/USD currency cross
Source: Bloomberg

GBP/USD seeks some bullish momentum
A barrage of UK data today will keep sterling on the back foot until after 9.30am, but the slow drift lower continues. GBP/USD upside moves of late have been constrained by the $1.4550 area, so this and then the $1.46 zone must be cleared to get bullish momentum moving. Dips toward $1.44 have hitherto been bought, but a break below this level targets $1.4277 and then $1.4230.

EUR/USD drop stalls
The EUR/USD downward move has stalled around $1.1150, but given a resumption of bearish momentum we look for $1.11 and then $1.1070 in the short-term. A more sustained move would head towards the 2 February peak at $1.0940. Any bounce needs to clear $1.1250 and then $1.1350. 

AUD/USD benefits from risk appetite
The general recovery in risk appetite has done wonders for AUD/USD, and now we look to see if the pair can push on to $0.72 and then above the February high around $0.7250.

The next obstacle beyond this would be the 200-day simple moving average (SMA) at $0.73. AUD/USD has not touched this indicator since September 2014, so we could be seeing the beginning of a new trend higher, especially after the ferocious battles to stay above $0.70 that have been the hallmark of trading in this pair since September last year. 

USD/CAD looks ready to tumble further
The failed attempt in USD/CAD to move above C$1.40 resulted in a hefty move lower yesterday, that puts the pair on course to test the low of the month around C$1.3639. Below this we look to C$1.3457, the peak from September. Any bounce needs to clear the C$1.40 area and the 50-day SMA (C$1.3984).  

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