CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.

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

After last night’s Fed meeting, risk appetite is back, with the Aussie in particular looking to add to gains. 

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
EUR/USD currency cross
Source: Bloomberg

Buyers in charge of GBP/USD
Selling in GBP/USD yesterday stalled around $1.4230, so if we can hold above here there is a possibility of a move back towards $1.4350, the highs of the week. A passable hourly trendline from the 21 January lows remains in place, and with the price back above the 200-hour simple moving average (SMA) – $1.4244 – it looks like the buyers are in charge for now.

EUR/USD rallies
Despite Mario Draghi’s best efforts, the euro has still managed to rally over the past few days. It has yet to really push beyond $1.09 but so long as the hourly trendline holds (currently support c. $1.0870) then this is a merely a matter of time. Beyond this lies the 200-day SMA at $1.1052.

AUD/USD favours the bold
As ever, AUD/USD continues to be the place to be when risk appetite revives. With the pair now through the highs of the past two weeks, we look to resistance around $0.7118 and then $0.7155. The pair has pulled away from the rising trendline from last week’s lows, so it might pay to wait for it to pull back towards this line, which may suggest a move back down to $0.70.

USD/JPY awaits BoJ meeting
Ahead of tonight’s key BoJ meeting, USD/JPY is holding up well, but it needs to push on through ¥119 to be sure of fresh gains. If it clears this then targets around ¥119.56 and then ¥120 come into view. Dips should continue to be bought in this pair, even perhaps as far down as ¥118. 

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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