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

FX markets are still trapped to some extent by the impending Fed meeting, with CPI figures and ZEW data on the calendar for the day also weighing on minds. 

EUR/USD
Source: Bloomberg

GBP/USD looks set for more losses
Having failed to push on yesterday, it looks like a close down towards $1.51 today would indicate more losses on the way in GBP/USD. Over the past three sessions, $1.51 itself has been major support, but a daily close below here would target $1.5059 and then $1.5101 – key support from 8/9 December.

Any bounce needs a daily close above $1.52 to confirm bullish momentum, with a target around $1.5238 (the 50-day simple moving average [SMA]) and then on towards $1.5304.

EUR/USD may be ready to swing
The push to the 200-day SMA ($1.1036) indicates we still have bullish momentum in EUR/USD, but with indicators such as relative strength index and stochastics now at elevated levels, caution is advisable for latecomers to this rally.

Further targets lie around $1.11 and then $1.1148, but the risk is now more to the downside, with a move below $1.10 signaling further weakness and pointing towards $1.0941 and then $1.0838. 

AUD/USD in the hands of the bulls
Having bounced yesterday, it now remains for Aussie bulls to push on through $0.73 to confirm upward strength is still in pace. This would lead to a test of targets in the direction of $0.7337 and then on towards $0.7403.

A failure to hold these gains would push the pair back towards $0.7206 (the 50-day SMA) and then down towards $0.7186. 

USD/JPY remains bullish
Dips towards ¥120.50 continue to be bought, so for the moment it looks like the early December pullback has run its course.

If the price can sustain a move through ¥121 then we may see a push towards ¥121.60 and the 200-day SMA. Only a close below ¥120.50 confirms that the sellers are back in charge.

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