US dollar strength is apparent this morning, with the pound in particular losing ground rapidly in the wake of the Fed meeting. 

Pound sterling
Source: Bloomberg

Sellers in control of GBP/USD
Last night’s Fed move has led to further weakness in cable, taking it back to key support in the region of $1.4950, with more potential support around $1.4923.

The sellers remain in control, with further downside targets around $1.4870, and then on towards $1.4780, the bottom end of the existing descending channel. A bounce would need to clear $1.50 to suggest a turnaround is in play.

EUR/USD losses remain relatively contained
So far losses have been relatively contained, with sellers unable to get the pair below support at $1.0822.

If this is broken we look towards $1.0770 and then $1.0675, as the pullback from $1.10 continues.

A turn higher would run into resistance around the 50-day simple moving average (SMA) at $1.0923, and then on towards $1.0968. 

AUD/USD pullback may be over
Continuing reluctance to push much below $0.72 suggests the pullback from the December highs may have run its course.

If the price can move back through $0.7263 upside momentum may accelerate, at which point we look towards $0.7323 and then $0.7366.

Downside targets if $0.72 is lost lie around $0.7116 and then $0.7056. 

Any USD/JPY weakness looks to be bought
Strong gains in USD/JPY last night indicate that dollar bulls are still in charge here, with further upside targets around ¥123.23 and then ¥124.

Support is possible at the 200-day SMA at ¥121.51, with the daily pivot at ¥122.12 also worth watching. For the time being, it seems that weakness in this pair will continue to be bought. 

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.