GBP/USD showing signs of strength
GBP/USD appears to be creating a more bullish pattern, with the pair consolidating to form a new higher high overnight.
This $1.4204 support level will be key going forward. As long as price remains above this level, there is likely to be a bounce from here to take back some of the losses we have seen of late.
Resistance levels of note are $1.434, $1.435 and $1.4445. Support levels to watch are $1.4204 and yesterday’s low of $1.4081.
USD/JPY bounces from crucial 2015 low
The currency pair is rallying back from the absolutely crucial ¥116.21 support level, which forms the major low of 2015.
This is essentially the level which underpins the whole last year of price action, where a close below ¥116.21 would point towards another major selloff. However, for now it seems that this is one step too far and we are seeing a strong move higher through trendline resistance.
This ¥118.06-¥118.38 area forms a very notable zone of resistance and thus a close above ¥118.38 would be needed to signal continued upside for the pair. Otherwise, look out for short-term intraday reversal signals which would point towards a pullback in accordance with the recent moves.
Resistance levels to watch are ¥118.25, ¥118.38 and ¥118.86. Support levels of note are ¥117.43, ¥116.97 and ¥116.51.
AUD/USD rallying, yet wedge points to pullback
AUD/USD has clearly formed a bottoming pattern this week, with the pair rounding off and now moving towards the upside.
It is worth noting that we saw the same type of thing back on January 12, yet further downside ensued. However, this certainly looks like a more reliable pattern given the time taken to form it.
While the overall picture of the week looks like we could see further gains, the short-term rising wedge we are seeing overnight looks like giving back some of the gains yesterday.
As such, an hourly close back below $0.6985 would point towards a retracement with $0.6963, $0.6938 and $0.6928 the most notable levels that could cap such a move.
Near-term resistance levels of note are $0.7044 and $0.7077.