FX snapshot – GBP/USD, EUR/USD, AUD/USD, USD/JPY

Despite gains for some risk assets overnight, it looks like investors are still not quite ready to move out of safe havens.

Pound and dollar
Source: Bloomberg

GBP/USD eyes $1.43

A bounce in cable had been in the offing for a while, given that the pair has been oversold for the entirety of January.

The pair needs to push firmly through $1.43 to indicate that more is to come, in which case $1.4390 comes into play, followed on by $1.4435.

A break below $1.4240 would suggest that we are heading down towards $1.4140.

EUR/USD could drop to $1.0810

Momentum to the upside has stalled below $1.0950, and so a move down towards $1.0810 for EUR/USD now seems likely.

A break of this support area would open the way down to the January lows of $1.0712. Any bounce needs to clear $1.0950. 

AUD/USD could see $0.6994

Bullish momentum has lifted the Aussie off its lows around $0.6850, but so far the peak from early Monday around $0.6910 is holding back further progress.

If the pair does push higher then $0.6950 comes into view, with $0.6994 beyond this.

A downside break of the lows from last week heads towards $0.6806 and then $0.6762.

USD/JPY could see further gains

USD/JPY is pushing on towards the highs of last week around ¥118, with bullish momentum still in evidence on the daily chart.

A break above here would head towards ¥119. ¥117 remains as support, but a break down below here would head towards ¥116.55, but so long as the pair holds above ¥116 then further gains look likely. 

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.