FX snapshot

Bearish movements suggest the dollar is still the driving force, even as the US takes the day off. 

Source: Bloomberg

GBP/USD heads the bottom of the descending channel
The turn lower in GBP/USD this morning suggests the pair is heading back towards the lows of Tuesday and Wednesday around $1.5053, which would put the downtrend from the 19 November high back in focus.

Further support is possible around $1.5025 and then $1.4990, as the price heads down towards the bottom end of the ongoing descending channel. A breakout through $1.5050 would put the buyers back in charge and target $1.5230.

EUR/USD is turbulent
A choppy session yesterday saw the pair break higher and then drop swiftly, putting it back below the current downtrend line. Overnight we saw $1.0630 provide strong resistance, so now we look towards the lows of yesterday near $1.0580. A move lower will bring $1.05 and then $1.0440 into focus as possible support.

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AUD/USD rally seems to be at an end
The overnight drop seems to have put an end to the steady rally in AUD/USD, and with the price pushing through $0.7220 it may be that the pair moves back towards support around $0.7170.

If we see a recovery during the day then $0.7240 will provide resistance, followed on by $0.7254, with an initial target for any rally around yesterday's highs of $0.7282. 

USD/JPY continues to head lower
The drift lower continues, with yesterday's low at ¥122.31 looking to be the next support area. A break through here targeting ¥121.90 and then ¥121.60, with bearish stochastics complementing the picture. A rally needs to break ¥123 as a first target, before moving on to the month high around ¥123.50. 

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