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

Negativity prevails across markets this morning, with fresh losses for the Aussie and further downward moves for sterling.

Pound coins and dollar notes
Source: Bloomberg

GBP/USD heads lower

Fresh Brexit polls continue to knock this pair, as the ‘Leave’ campaign appears to be moving into the ascendant. A recovery to $1.43 overnight has fizzled rapidly, and now we look to see if the pair can break yesterday’s low around $1.4115.

If it pushes on, the next area to watch would be $1.40, and then below this the February low at $1.3836 comes into prospect.

EUR/USD retreats

Yesterday saw a modest bounce in the middle of the day that recovered most of Friday’s losses, but then stalled at $1.13. As the new day has got underway the pair has retreated.

The next support lies around $1.1230, and below this the pair will head towards the rising trendline from December, potentially seeing support materialise around $1.1140. 

AUD/USD continues to drop

The downward move for AUD/USD appears to be gathering pace, after the small bounce yesterday.

A push through $0.7350 would likely see downside momentum accelerate, with the potential for a move back to the 200-day simple moving average (SMA) at $0.7267 in the first instance, and then down to the May low in the region of $0.7150.

It would need a close above the daily descending trendline off the April high, ie above $0.75, to reverse the current bearish impression.

USD/JPY heads towards lows of early May

The downward trend continues here, although the pair is somewhat skittish around ¥106, the lows of early May.

A break below here would then head towards the October 2014 low around ¥105.20, and then the risk is a swift dive to ¥102. A rally needs to get back above ¥106.50 to even begin to dent the bearish outlook. 


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