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

Flight to safety is still in vogue, as investors continue to depart riskier currencies for the havens of the US dollar and Japanese yen.

GBP/USD
Source: Bloomberg

GBP/USD looks for some stability
The steady progression of losses continues here, putting possible support at $1.4644 and then $1.45 in focus, as the pair heads towards levels last seen in April.

For the time being the price continues to hold above $1.47, and if it stabilises here we could see a move back towards the $1.4884 area, potentially putting in place the foundations for a decent move to recover ground lost in late December.

EUR/USD still in December’s trading range
December’s trading range between $1.08 and $1.10 remains in effect for EUR/USD, so we are still watching to see how this resolves itself. At present, it looks like the sellers have the upper hand, but caution is prudent until a clear close below $1.08 takes place.

This would open the way to the December pre-European Central Bank lows around $1.0590, with a further target around the March lows of $1.0470. A break higher runs into resistance around $1.10 and then at the 200-day simple moving average just above it at $1.1040.

AUD/USD firmly in the hands of the bears
Monday’s steep drop has been reversed, with the pair back above $.072, but with the gains of late December wiped out it appears that the sellers are pre-eminent.

With momentum indicators on the daily chart now firmly bearish, a move back towards $0.7230 would be a selling opportunity, with a target towards yesterday’s lows near $0.7160, with a break below here heading towards the mid-December low around $0.71.

Bulls may have run out of stream on USD/JPY
The pair continues to head towards the key level of 2015 around ¥118.30. Buying since midday yesterday reversed some of the steep losses of Monday, but since then the bulls have run out of steam.

Now we look to see whether a drop through Monday’s low around ¥118.70 will materialise. It certainly looks like ‘sell on rallies’ applies here. 

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