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

GBP/USD and EUR/USD look to build on yesterday's gains, while AUD/USD searches for fresh impetus. 

Euro and US dollar notes in a pile
Source: Bloomberg

GBP/USD eyes close above $1.5150

A sharp rally yesterday carries us back into bullish territory here, although we still need to see a move beyond yesterday’s highs above $1.5150, an area where gains petered out in late November as well. If we do see this, then the next target becomes $1.5226, and then on towards $1.5320. Downside targets lie around $1.4970 and then the lows of the week at $1.49. 

EUR/USD buyers still in control

We are seeing a drift lower this morning, after yesterday’s bounce, but for the time being the buyers do have the upper hand. A continued move through $1.0980 (the 50-day SMA) would be the event to watch for, ideally with $1.10 being taken out as well. Targets on the upside then develop around $1.1034 and $1.1090. Buyers should not be unduly concerned unless the pair takes out the $1.0808 pivot point. 

AUD/USD remains in consolidation phase

Although still drifting higher, further bullish momentum requires a break through $0.7360, which would clear the highs of October. Until that happens AUD/USD remains in consolidation mode, with support around $0.7280 and then $0.7250.

USD/JPY could fall to ¥121.55

Having failed to move beyond the ¥123.40 area, it now looks as if USD/JPY sellers have the upper hand, although they need to clear the lows of this week and late November around ¥122.30. If this is accomplished then the price may move back towards the 200-day at ¥121.55. A bounce from current levels would head towards resistance at ¥122.40, and then on towards ¥124.10. 

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