FX snapshot: GBP/USD, EUR/USD, AUD/USD, USD/CAD

Cable remains stuck in its range, while the euro awaits Mr Draghi’s speech later. 

EUR/USD
Source: Bloomberg

GBP/USD continues to decline
The gentle decline in cable goes on, with the area around $1.5413 still holding as support, as it did on Thursday of last week. A failure to move back above $1.5460 will signal the downside has become the path of least resistance, with a break through Wednesday’s low around $1.5410 taking us onwards to the $1.5380 level. Rising support is still to be found from the October trendline, so this should limit any real downside for the time being, with $1.5280 being the area to watch.

EUR/USD awaits Mario Draghi’s speech
With Mario Draghi scheduled to appear later, euro traders will need to keep their wits about them. Although the pair has moved steadily lower for two days now, support is likely around the 19 October low of $1.1307; a break through here would target the $1.1240 area. With EUR/USD now operating below its 200-hour simple moving average again the real risk is that a dovish commentary from Draghi pushes the pair towards $1.1150. 

AUD/USD looks to bounce
Earlier in October $0.72 stemmed the selling in AUD/USD, and it appears to be doing a similar job now. If this level is lost then it would not be surprising to see a move back towards $0.7112. Any bounce must clear $0.73, the highs from 20 October, before heading on to $0.7350.

USD/CAD may pullback
The bounce here remains intact, although it looks a little overextended. We may now see a pullback towards the C$1.30 level, which would not unduly endanger the current uptrend. It would take a move through C$1.2978 to really suggest the dollar has run out of energy versus its Canadian counterpart. 

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