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

Dollar weakness appears to be abating, which is putting a dent in cable’s remarkable rally. 

EUR/USD forex
Source: Bloomberg

GBP/USD runs into resistance
Cable’s remarkable rally has run right into the previous support line from mid-2015, which is now acting as resistance. The failure to push on beyond $1.46 suggests a topping pattern is in place and that we can now expect more downside here.

Support comes in around $1.4450 and then $1.4377. It would take a move above $1.46 to reignite the rally, which would then push towards the 50-day SMA at $1.47. 

EUR/USD gains on hold
Two strong days of gains in EUR/USD have given way to a pause today. If the price fails to push on through $1.1250 then we may see a continued retracement back towards $1.10 with some support possible around $1.11.

The extent of the rally would indicate a pullback is needed, given how overbought the pair is on intraday charts.

AUD/USD lows offer chance to buy
The rising trend off the January lows still holds here, so any dips towards $0.7116 could still be bought. However, sustained price action below here in the coming week is likely to see a new leg lower develop.

In that case, we look to support around $0.7070 and then $0.70 itself. Below here the move would head towards $0.6911 and then $0.6827.

USD/JPY looks primed to sell
With the price below ¥117, it may be the case that we will see more downside. Any bounce back to the 50-hour simple moving average at ¥117.68 would likely be the signal for more selling, with further downside targets around ¥116.8 and then ¥115.51.

Any rally back above ¥117.80 would target ¥118.90 and then ¥120.

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 full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.