FX levels to watch: EUR/USD, GBP/USD and USD/JPY
The dollar is weaker as the Fed begins its two-day meeting, but given the recent trends in FX markets this may not last long.
EUR/USD rallies into possible selling zone
The EUR/USD is making another attempt to break higher, spiking towards $1.137.
But such surges have not turned out well over the past month. We would need to see a close above $1.14 to provide more evidence that this breakout has some strength behind it. Otherwise it will merely provide another selling opportunity.
GBP/USD on the up for now
GBP/USD continues to rebound from the lower low created last week, but it now needs to clear trendline resistance from the November highs, which would suggest a push to $1.27.
A failure to maintain these gains would be another selling opportunity. Above $1.27 the $1.2773 area comes into play.
USD/JPY back to crucial support
The area around ¥112.30 has been crucial support over the past six weeks for USD/JPY, so if this holds a bounce back to ¥113.60 is possible.
A failure to hold the zone brings ¥111.30 into play, the lows from late October. It will be crucial to watch the intraday price, to see if a rally from the lows has legs. Any bounce that fails to recover ¥113.00 would be a selling opportunity.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
See an opportunity to trade?
Go long or short on more than 16,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets