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

Dollar weakness appears to be abating, which is putting a dent in cable’s remarkable rally. 

EUR/USD forex
Source: Bloomberg

GBP/USD runs into resistance
Cable’s remarkable rally has run right into the previous support line from mid-2015, which is now acting as resistance. The failure to push on beyond $1.46 suggests a topping pattern is in place and that we can now expect more downside here.

Support comes in around $1.4450 and then $1.4377. It would take a move above $1.46 to reignite the rally, which would then push towards the 50-day SMA at $1.47. 

EUR/USD gains on hold
Two strong days of gains in EUR/USD have given way to a pause today. If the price fails to push on through $1.1250 then we may see a continued retracement back towards $1.10 with some support possible around $1.11.

The extent of the rally would indicate a pullback is needed, given how overbought the pair is on intraday charts.

AUD/USD lows offer chance to buy
The rising trend off the January lows still holds here, so any dips towards $0.7116 could still be bought. However, sustained price action below here in the coming week is likely to see a new leg lower develop.

In that case, we look to support around $0.7070 and then $0.70 itself. Below here the move would head towards $0.6911 and then $0.6827.

USD/JPY looks primed to sell
With the price below ¥117, it may be the case that we will see more downside. Any bounce back to the 50-hour simple moving average at ¥117.68 would likely be the signal for more selling, with further downside targets around ¥116.8 and then ¥115.51.

Any rally back above ¥117.80 would target ¥118.90 and then ¥120.

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