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. 

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