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

Good job numbers have strengthened AUD/USD, while the steady rise in GBP/USD continues. 

Australian dollar coins and notes
Source: Bloomberg

GBP/USD pulls back

Cable traders have been treated to two excellent trends in the space of a week, with the current uptrend still in effect, even as cable pulls back from the overnight peak of $1.5257. Support is likely around the trendline at $1.5185, with a break above the overnight high clearing the way to $1.5293 and then $1.5350. A drop through the trendline would head towards $1.5158 and then $1.51 itself. 

EUR/USD remains bearish

This pair continues to hold above the $1.0660, so while the pullback from the October highs is still in effect, sellers have been unable to establish fresh lows. As a result, the bearish outlook is contained until we see a daily close below $1.0660, which would then point towards the April lows at $1.0520 and then the March bottom at $1.0460.

USD/JPY could rise to ¥123.50

The mid-October rally is still intact, although the pair is continuing to drift back from the highs of last week. Trendline support is likely around ¥122, at which point we may see a bounce develop that will take the pair back towards ¥123.50. Downside targets lie around the 200-day SMA at ¥121.20, if the rising October trendline is lost.

AUD/USD lifted by job numbers

The stellar job numbers put new life back into the Aussie, recovering the ground lost last Friday. However, this has taken it back to the top of the descending channel that has been in effect since early October. If gains above $0.7150 do not come soon, then the pair may actually turn lower once again and move back to the bottom end of the channel, near $0.70. 

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