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FX levels to watch – GBP/USD, EUR/USD, AUD/USD, USD/JPY

The pound has finally found some support, while the dollar looks to rally against the yen. 

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Pound and dollar
Source: Bloomberg

GBP/USD

There will be much ink expended in trying to determine whether cable has found a bottom. If the bulls can mount a defence of $1.32 then we may see some upward moves, potentially to $1.36 in the short-term, with $1.40 the key to watch in the coming weeks.

At present, with so much doom and gloom the pound may find it difficult to push higher, and any close below $1.32 opens the way longer-term to $1.20 and $1.15.

EUR/USD

The $1.10 mark remains the key level here, with the price holding above here for three successive sessions. As a result, we have seen a bounce for the time being, but a move above the 200-day simple moving average (SMA) at $1.11 would be needed to indicate fresh bullish momentum.

A break below $1.10 would target the lows of early March, down towards $1.09 and then $1.0830. for the pair.

AUD/USD

Four times in June the zone between $0.73 and $0.7350 has prevented further downside, and thus the price is on the up this morning. for AUD/USD.

A move above the 50-day SMA at $0.7410 would likely bring out fresh buyers, with an initial target of $0.75. Above here the price would head towards $0.76, the closing highs of the month.

So far there is little desire to push the price below $0.73, but if this occurs fresh support is possible around 40.72, the lows of late May.

USD/JPY

Despite the damage of recent sessions the pair is clambering back above ¥102, so there is the possibility that we will see a move back to ¥104 if risk appetite recovers.

Longer-term, however, the trend is still down, so the 50-day SMA at ¥107.80 will likely prove to be a stumbling block. Any drop through the lows of the week around ¥101.50 would head towards Friday’s low at ¥99. 

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