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

Federal Reserve week arrives, so all eyes are on the dollar, especially on a day with so few macro drivers. 

Pound and dollar
Source: Bloomberg

GBP/USD eyes $1.24

Weakness towards $1.2550 brought out buyers last week, and the pair has moved back above $1.26 in early trading, in what is a busy week for UK economic data.

We would need to see the price move back above $1.27 to suggest that the dip has run its course, which would then open the way to the month’s high above $1.2760.

A push lower from $1.26 needs to clear $1.2550, which would then open the way to $1.24. 

EUR/USD could see $1.0620

After the post-European Central Bank drop the pair has stabilised above the key $1.0525 level. Bears will have a lot of work to push the price below here, particularly given that euro shorts have hit their highest level since 2014.

A bounce is pushing the price back to $1.0580, and above here the next area to watch is $1.0620. From here the price needs to clear $1.07 to indicate the post-ECB weakness has run its course. 

USD/JPY could find support at ¥111.44

All eyes are now on ¥115.97, a previous area of strong support in late 2014 and through 2015. A move above here suggests ¥118 and ¥120 will be tested in short order.

If the price moves lower then clear support is possible at ¥114.55 and then down to ¥111.44. Bulls are firmly in charge ahead of the Fed but it seems that there is little the committee can add to justify further USD strength in the second half of the month. 

AUD/USD could see November low

The $0.75 area has capped gains in AUD/USD since late November, with the price faltering towards the end of last week. Since last Monday buyers have mounted a spirited defence of $0.7420, so this is the first level to watch on the downside.

The $0.7360 mark and then the November low at $0.73 then become the levels to monitor. A rally must manage a daily close above $0.75, to open the way to $0.76. 

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.