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

The return of risk appetite in some FX pairs is indicating the dramatic moves of last week may be coming to an end. 

GBP/USD
Source: Bloomberg

GBP/USD starts to rebuild support
Cable has been building support at $1.45, and for now it is once again heading back towards $1.4650, the highs from last Thursday and Friday.

If the pair can hold above $1.46 then a fresh opportunity to go long may develop targeting $1.4744. A close below $1.45 would reactivate the bearish trend.

EUR/USD has stalled
After a decent two-day move last week, EUR/USD has stalled just shy of $1.0950, and a move back below $1.0850 would suggest the bounce has run its course for now.

In that eventuality we look to the January lows at $1.07, and then below this towards $1.05. Any close above $1.0950 targets $1.10, and then on towards $1.11.

AUD/USD stops just short of support
AUD/USD has taken a beating along with other risk assets, but as these try to stabilise a similar pattern is occurring here.

The pair has stopped short of support around the September 2015 low of $0.69, and if it can move back above $0.7035 a bottom may have been created, which would lead us on towards $0.7120.

USD/JPY looks to bounce
A bounce of ¥117 may be what is needed to get this pair moving higher, with an initial target around ¥118.35 and then on towards ¥119.43.

Daily momentum indicators appear to be bottoming out, so if the pair can close above ¥118 the outlook may switch to one more favourable for the bulls. A move back below ¥117 would head towards ¥116.21, the August 2015 lows. 

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