It looks like the euro is losing steam again against the pound, while an overnight bounce in AUD/USD has been used as an opportunity for fresh selling.
EUR/GBP gains stallGains have stalled at the 50-day simple moving average (£0.8432), and with yesterday’s drop lower the advantage would seem to lie with the sellers. Further bearish pressure would suggest a drop down to £0.8344, the lows of early August.
With the pair currently oversold intraday, a bounce cannot be ruled out, although it will need to clear £0.85 to indicate real upward momentum is in evidence. Above this, £0.8563 and then £0.8650 would be the areas to watch.
AUD/USD ralliesThe pair saw a textbook rally overnight to the 50-hour SMA ($0.7555), with the sellers taking control once again. We now look to the $0.75 low from yesterday’s session, which was also key support from the end of August.
A further drop would head towards the $0.7420 zone, last seen in late July when the last dip in AUD/USDwas furiously bought. The inclination here would be to remain short unless the pair breaks through $0.76.
USD/JPY still controlled by sellersYesterday’s session proves the sellers are still broadly in control, with the pair back below the year’s downtrend line. We now look to see if USD/JPY can push below ¥101.15, which would then clear the way to a test of ¥100.
Moves higher on the hourly chart ran into resistance around ¥102, which also coincides with the 100-hour SMA. A move through here would head towards the 200-hour SMA at ¥102.65, which also lies around the key 2016 downtrend line.
