EUR/USD price action mimics the tail-end of December’s
Here too the price action from the end of December has been broadly repeated. A push through the key $1.0525 area is being met by heavy selling, so while the pair remains in an uptrend from the lows around $1.0380, it needs to avoid a daily close below $1.0450. A move through $1.0550 would head towards $1.0647.
USD/JPY yen strength returns
Despite last night’s Federal Reserve minutes broadly maintaining the hawkish view from the December meeting, yen strength has returned. The key short-term area to watch is ¥116.40, the lows from late December.
So far a push below here has been met with buying, with support emerging at ¥115.59, so if ¥116.40 holds we could see a move back towards ¥117.50. A drop through ¥116.40 would first test ¥115.59 and then head towards ¥114.34.
AUD/USD bullish momentum slows
After rallying heavily since the beginning of the year, we are seeing some of the bullish momentum dissipate here. However, the uptrend should hold unless we break the $0.7242 area, the highs from the end of December.
Dip buyers may get a chance to enter if this weakness persists, with a move through resistance at $0.7333 likely to open the way to $0.7425 and the 50-day simple moving average.