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

The FX market is slowly coming back to life, with key pairs establishing new levels as 2017 gets underway.

Pound sterling and US dollar
Source: Bloomberg

GBP/USD aims to build a foundation above $1.22

GBP/USD continues to build a base above $1.22. A dip yesterday brought out the buyers, so now we look to see if the price can push on through $1.23 and then the high from the end of December around $1.2365.

Above here the next targets would be $1.25 and then $1.2611. A failure to hold $1.22 would target $1.2050. 

EUR/USD seeks to challenge $1.05

Here too the price has managed to lay foundations for a move higher, so long as it holds $1.0350.

We could see a challenge of $1.05 and higher, but that level will present significant challenges. The next areas to watch for potential support are $1.0230 and then $1.0096.

USD/JPY struggling to hold on to ¥118

Barely a week old but already in 2017 the pair has established ¥118 as a difficult area to hold.

As a result, a continued failure to stay above this level would suggest a drop to ¥117 and then ¥116.11. USD/JPY bulls need a daily close above ¥118 to target ¥119.65.

AUD/USD rally flies under the radar

The Aussie’s rally has gone relatively unnoticed, but a push through the $0.7240 level this morning indicates the buyers are still in charge.

On the upside, $0.7289 and then $0.7331 are the next areas to watch, while only a move below $0.72 will convince the sellers to re-emerge. Even then a firm close below $0.7160 is needed to confirm a bigger downward move is in play. 

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.