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

Risk assets are in retreat, with AUD/USD sharply lower and USD/JPY failing to recover its upward momentum.

Pound and dollar
Source: Bloomberg

GBP/USD eyes mid-2010 support

Cable came storming back yesterday, putting itself back on course for higher highs. With such a resurgence on Monday, dips today will likely be seen as buying opportunities.

A move back to $1.4450 would then clear the way to head back to $1.4577, and then on towards $1.47.

Only a move back below $1.4320 would indicate that weakness is in store, and then we look to key weekly support from mid-2010 at $1.4230.

EUR/USD could move to 200-day SMA

Most people will have been glad to see the back of January where EUR/USD is concerned.

So far the price continues to bounce between $1.08 and then $1.0950, with the strong recovery of the past two days suggesting that this rangebound trading will continue.

Any break higher needs to clear $1.0950, and also move above the long-term downtrend line. This would then allow the bulls to contemplate a move towards $1.10 and possibly on towards the 200-day simple moving average at $1.1053.

A failure at the downtrend line would suggest the sellers are in control again, which would take us back towards $1.0840 and then $1.0790.

USD/JPY could target ¥123

 If the pair doesn’t get back above ¥121 soon, then it looks like the bounce has run its course.

A sustained move towards ¥120 would indicate that a new leg lower is in progress, with targets down towards ¥119.08 and then ¥118.

Any move back through ¥121 would then target ¥122 and ¥123.

AUD/USD could head lower

AUD/USD’s rally has stalled around $0.71, with bounces above here unable to gain traction. With indices and oil in retreat, it would not be surprising to see this pair head lower too.

A move below $0.7040 would target $0.7010 and $0.6980. It would take a firm close above $0.7140 to reignite the upward move. 

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.