Over 40 years’ heritage
185,800 clients worldwide
Over 15,000 markets

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. 

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.

GBP/USD

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.

EUR/USD

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. 

USD/JPY

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. 

AUD/USD

The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.