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

PMI data and the reopening of the Greek index this morning have been the main developments, with FX markets so far quiet as the week gets underway.

Pound and dollar
Source: Bloomberg

GBP/USD eyes $1.57

The currency pair continues its quest to break higher, making small gains this morning, but key resistance around $1.5670 still remains to be broken. If the price can move through this area and reach $1.57 then we will have confirmation that the buyers are back in charge.

Continued failure to push beyond the resistance of the past week should hand the initiative back to the bears, risking a move back towards $1.5550 and then $1.54. 

EUR/USD skittish around $1.11

The picture remains finely-poised between euro bulls and bears here, even as the price looks to build on the move off $1.09 last Thursday and continue its rally.

Friday’s spike and rapid retreat confirms that the currency pair is still skittish about the $1.11 level, so this is the area to watch on the daily chart, conveniently coinciding with the 50-day SMA at $1.1096. 

USD/CAD sees strong overbought reading

Fresh highs this morning have put the buyers back in charge, acting as a reminder that the broader fundamentals in this pair still act as powerful support for the US dollar longs.

Pullbacks in the longer-term should continue to be bought, but new entrants should be careful given the strong overbought reading on the daily chart for USD/CAD

USD/JPY heads towards early June highs

This pair needs to move through ¥124.40, the high from Friday, to confirm that a turnaround is underway, with an upside breakout still heading towards the ¥126 highs of early June. 

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