EUR/USD aims to build on strong support
A tentative recovery is in place here, after EUR/USD’s attempt at a rally yesterday was knocked back.
However, the price succeeded in holding above the lows of last week around $1.2260, so if this continues to hold the case for the upside increases. A close above $1.2360 would be an encouraging sign, and would open the way to $1.25 and higher. A drop back below $1.2260 would suggest more losses are likely, with $1.2165 and $1.2092 as potential support.
GBP/USD hopes for more gains
Here too for GBP/USD, an attempt at a rally was defeated yesterday.
However, the push higher from the lows of last week is still intact. The first targets to watch are $1.4070 and then $1.4145, and then on to the January high at $1.4345. A turn lower would head towards $1.3836.
AUD/USD constrained by USD strength
The US dollar appears to be in the ascendant here for AUD/USD, with signs of exhaustion despite the strong bounce at the end of last week.
Gains have been constrained at the $0.7849 level, so this and then the $0.7877 level are the ones to watch. A close above the latter would open the way to $0.80, while support is possible around $0.7807 and then $0.7748.