Currency markets are quiet this morning, as economic data stays away on the first day of the week. 

Pound coins stacked with a US dollar note in the background
Source: Bloomberg

GBP/USD continues its rise but resistance remains

Cable continues to clamber off the lows of last week, but as yet there is little sign that we have a reversal in place. For now resistance remains at $1.5243, and then at $1.5316. The daily RSI continues to bounce from oversold levels, and if today finishes higher the sequence of lower lows will have been broken, so watch for a turn higher in daily stochastics to confirm that a bounce is underway. A move lower is likely to find support at $1.5131 and then $1.5091.

EUR/USD bounce finds support

The steady bounce continues for EUR/USD, with the August uptrend intact. Upside resistance lies around $1.1198, and then towards the September high around $1.13. For now the $1.10 area continues to act as support, but a move below here would signal a move towards the $1.09 level of mid-August.

USD/JPY unable to make progress

The ¥119.50 mark continues to hold back gains for this pair, as it did on Friday, but a move above here targets ¥119.93 and then ¥120.85. Daily stochastics however have turned bearish, and while there is support from the rising trendline that began back in August 2014, a drop below will head towards ¥118.33, and then towards ¥116.76.

AUD/USD could see more selling

The Aussie continues to fall, with today’s bounce perhaps being the cue for fresh selling. Daily stochastics and the RSI remain at oversold levels, so any move back towards $0.6984 could mark the beginning of a bigger move lower. Certainly, the trend on the four-hour chart needs to change, and markedly so, moving back above the 50-period SMA at $0.7070 would be the first step. 

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