It's a key day for FX, with Federal Reserve minutes released later, which means that the session has started relatively quietly.

Pound and dollar
Source: Bloomberg

GBP/USD eyes $1.5250

The $1.52 level continues to hold as support, carrying on the pattern of the past five sessions. So long as the buyers continue to hold this line then we look towards $1.5250 and then $1.5280.

If a close below $1.52 occurs in coming sessions then support is likely near Tuesday’s lows at $1.5167, and then on towards the November low at $1.5050.

It is important to remember that cable is still stuck in a descending channel, so as long as this prevails the downside would appear to have the upper hand.

EUR/USD's gains slowed at $1.0680

Buyers have pushed the euro back above yesterday’s low around $1.0640, but the 50-hour simple moving average at $1.0670 continues to constrain upside.

EUR/USD's gains yesterday petered out at $1.0680, so we watch this level and Tuesday’s low for an indication as to the next likely direction.

Bulls need to see a strong move through $1.07, which would open the way to $1.0740 and then $1.0820, while bears will be examining downside targets near $1.0660 and then $1.0550.

AUD/USD could hit $0.70

The descending channel still prevails here, so while AUD/USD has recovered from the week’s lows around $0.7070, it still needs a close above $0.7150 to confirm bullish momentum.

A downward move from here still looks to hit $0.70 and beyond.

USD/JPY buyers stepped in near 50-hour SMA

An overnight move lower has seen buyers step in near the 50-hour SMA (¥123.25), and close to the lows of Tuesday’s session, around ¥123.20.

If the price can hold here then a move back towards ¥123.50 may develop, clearing the way for a move to the ¥125 area.

Otherwise, rising support from the October trendline comes in around ¥122.90.

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