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

Ahead of the FOMC this evening we may see a general drift in FX markets, but sterling bulls will be looking to hold on to most of yesterday’s gains.

GBP/EUR
Source: Bloomberg

GBP/USD looks set to breakout
Having raced higher yesterday following those UK job numbers, the pair is now stabilising around $1.55. The 50-, 100- and 200-day simple moving averages are all just above this level, so we will be watching for a move towards $1.5530 as a first step in any further breakout. Support is likely around the $1.5453 level, and then towards $1.5376. 

EUR/USD struggling to move on
The pair continues to hover below $1.1320, unable to push higher as Fed day dawns. If it is able to move onwards then the next target is $1.1380. A rising 50-day SMA ($1.1276) is likely to be an area where buyers will step in, with the move upwards in daily stochastics providing further reason to be bullish here.

AUD/USD may be foiled by 50-day SMA
Aussie bulls will be pleased with their bounce, but now this pair has hit the 50-day SMA ($0.7190), which, combined with the $0.72 level that stalled progress yesterday, is likely to be a major stumbling block, at least until the Fed is out of the way. Downside targets lie in the direction of $0.7146 and then $0.7069.

USD/JPY still below ¥121
The pair remains stuck below ¥121 and the 200-day SMA just below this level, continuing the theme of the month. Fundamental news will take over from this evening, but if we do see a selloff then the ¥120.47 area and then ¥119.85 will be first areas of support. 

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