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

After last night’s Fed meeting, risk appetite is back, with the Aussie in particular looking to add to gains. 

EUR/USD currency cross
Source: Bloomberg

Buyers in charge of GBP/USD
Selling in GBP/USD yesterday stalled around $1.4230, so if we can hold above here there is a possibility of a move back towards $1.4350, the highs of the week. A passable hourly trendline from the 21 January lows remains in place, and with the price back above the 200-hour simple moving average (SMA) – $1.4244 – it looks like the buyers are in charge for now.

EUR/USD rallies
Despite Mario Draghi’s best efforts, the euro has still managed to rally over the past few days. It has yet to really push beyond $1.09 but so long as the hourly trendline holds (currently support c. $1.0870) then this is a merely a matter of time. Beyond this lies the 200-day SMA at $1.1052.

AUD/USD favours the bold
As ever, AUD/USD continues to be the place to be when risk appetite revives. With the pair now through the highs of the past two weeks, we look to resistance around $0.7118 and then $0.7155. The pair has pulled away from the rising trendline from last week’s lows, so it might pay to wait for it to pull back towards this line, which may suggest a move back down to $0.70.

USD/JPY awaits BoJ meeting
Ahead of tonight’s key BoJ meeting, USD/JPY is holding up well, but it needs to push on through ¥119 to be sure of fresh gains. If it clears this then targets around ¥119.56 and then ¥120 come into view. Dips should continue to be bought in this pair, even perhaps as far down as ¥118. 

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by analysts

Find out more about