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FX snapshot – GBP/USD, EUR/USD, AUD/USD, USD/JPY

US dollar strength is apparent this morning, with the pound in particular losing ground rapidly in the wake of the Fed meeting. 

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 sterling
Source: Bloomberg

Sellers in control of GBP/USD
Last night’s Fed move has led to further weakness in cable, taking it back to key support in the region of $1.4950, with more potential support around $1.4923.

The sellers remain in control, with further downside targets around $1.4870, and then on towards $1.4780, the bottom end of the existing descending channel. A bounce would need to clear $1.50 to suggest a turnaround is in play.

EUR/USD losses remain relatively contained
So far losses have been relatively contained, with sellers unable to get the pair below support at $1.0822.

If this is broken we look towards $1.0770 and then $1.0675, as the pullback from $1.10 continues.

A turn higher would run into resistance around the 50-day simple moving average (SMA) at $1.0923, and then on towards $1.0968. 

AUD/USD pullback may be over
Continuing reluctance to push much below $0.72 suggests the pullback from the December highs may have run its course.

If the price can move back through $0.7263 upside momentum may accelerate, at which point we look towards $0.7323 and then $0.7366.

Downside targets if $0.72 is lost lie around $0.7116 and then $0.7056. 

Any USD/JPY weakness looks to be bought
Strong gains in USD/JPY last night indicate that dollar bulls are still in charge here, with further upside targets around ¥123.23 and then ¥124.

Support is possible at the 200-day SMA at ¥121.51, with the daily pivot at ¥122.12 also worth watching. For the time being, it seems that weakness in this pair will continue to be bought. 

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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.