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

The FX market is slowly coming back to life, with key pairs establishing new levels as 2017 gets underway.

Pound sterling and US dollar
Source: Bloomberg

GBP/USD aims to build a foundation above $1.22

GBP/USD continues to build a base above $1.22. A dip yesterday brought out the buyers, so now we look to see if the price can push on through $1.23 and then the high from the end of December around $1.2365.

Above here the next targets would be $1.25 and then $1.2611. A failure to hold $1.22 would target $1.2050. 

GBP/USD price chart

EUR/USD seeks to challenge $1.05

Here too the price has managed to lay foundations for a move higher, so long as it holds $1.0350.

We could see a challenge of $1.05 and higher, but that level will present significant challenges. The next areas to watch for potential support are $1.0230 and then $1.0096.

EUR/USD price chart

USD/JPY struggling to hold on to ¥118

Barely a week old but already in 2017 the pair has established ¥118 as a difficult area to hold.

As a result, a continued failure to stay above this level would suggest a drop to ¥117 and then ¥116.11. USD/JPY bulls need a daily close above ¥118 to target ¥119.65.

USD/JPY price chart

AUD/USD rally flies under the radar

The Aussie’s rally has gone relatively unnoticed, but a push through the $0.7240 level this morning indicates the buyers are still in charge.

On the upside, $0.7289 and then $0.7331 are the next areas to watch, while only a move below $0.72 will convince the sellers to re-emerge. Even then a firm close below $0.7160 is needed to confirm a bigger downward move is in play. 

AUD/USD price chart

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.