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

Federal Reserve day has arrived, with key implications for currency pairs around the globe. 

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.
Pound and dollar
Source: Bloomberg

GBP/USD eyes $1.2782

We enter the second day of key UK data, with unemployment readings likely to provide key volatility. The price failed to hold above $1.27 yesterday, despite a rally heading into the CPI numbers.

A break higher for the pair requires a move through $1.2708 and then $1.2782. Only a close below last week’s low at $1.2559 would suggest we have seen the sterling rally come to an end.

EUR/USD bears await Fed meeting

Gains for EUR/USD since Monday have been capped around $1.0664, with the price falling back from this level already. If it does push higher, then the next areas to watch will be $1.0714 and then $1.0825.

Bears will not be able to celebrate unless they manage to get the price below $1.0525, and then they need a daily close below this level. Much will depend on what the Federal Reserve says tonight.

USD/JPY dips find buyers

Having poked above ¥116 at the beginning of the week, the pair has traded in a consolidation mode, with dips to or below ¥115 bringing out buyers.

We would need to see sustained price action below ¥113.50 to indicate that dollar weakness is driving a move lower here. Below ¥113.50 the targets are ¥111.44 and then ¥107.50.

The ¥121.55 mark is the next big level to watch on the upside. 

AUD/USD could find support at $0.7423

The pair is making another attempt to break the $0.75 area, which has acted as a ceiling since it first reached it at the end of November. 

A rally from here would then target $0.7519, $0.7545 and then $0.7567. A drop could test $0.7470, with a bigger move heading to support at $0.7423. 

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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.