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. 

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