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

The Aussie continues to claw its way higher, while sterling remains under pressure.

Pound sterling note
Source: Bloomberg

GBP/USD awaiting Fed meeting

The stronger dollar continues to make life difficult for sterling bulls. With little data to drive action, most attention is focussed on what the Federal Reserve will do next. As a result we could see further pressure on GBP/USD, perhaps down to the January lows around $1.20.

Once the Fed meeting is out of the way the situation may change, but in any case bulls will need to get the price back above $1.24 in the near-term to signal a new move higher.

EUR/USD holds on  

Within the past two weeks we have seen the EUR/USD price move to $1.05 twice, but the level has held firmly. Yesterday the pair fell back from $1.06 and the 50-day simple moving average (SMA), but buyers have returned, and if they can move the price back above $1.0620, more gains towards $1.0670 and higher may be in order.

Bears are likely to be frustrated unless they can get the price back below $1.05. 

USD/JPY tries to rally

Attempts at USD/JPY rallies continue to be constrained by the downtrend line off the January high at ¥118. The descending 50-day SMA (¥114.18) is also doing its best to cap upward progress.

Bulls need to break the downtrend line and then push above ¥115, an area that held back gains in mid-February and also at the end of last week. A fresh move lower could drop to ¥112.20, with the key area of ¥111.50 also providing potential support. 

AUD/USD about to move higher

Having pushed back from the highs near $0.7750, we could be seeing the beginning of a turnaround for the AUD/USD. The bulls have managed to bounce the price off the inside trendline that has been a feature of this pair for months.

With the 50-day SMA crossing above the 200-day, we may have the makings of a fresh push higher that will move the pair back to $0.77 and higher. 

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