FX levels to watch
The dollar has been in decline, with GBP/USD and EUR/USD strength coupled with a weaker USD/JPY. However, with key levels ahead, the Fed’s outlook this evening will likely set us up going forward.
EUR/USD rallies through notable swing high
EUR/USD has once again muddied the water, with the rally through $1.1393 providing a new higher high to negate the lower low formed with the break below $1.1305.
That provides a potential bullish phase coming into play, which will likely be determined by affairs at the Federal Open Market Committee (FOMC) later today. Watch for a break through the $1.1443 level to confirm the more bullish view that is building with the break above $1.1393.
GBP/USD rally takes us back above 61.8% resistance
Once again, GBP/USD rose into the 61.8% level, with the pair looking to have made an ABC three-legged retracement of the decline from $1.2912.
A rally through that swing high would point towards a likely period of upside. Until then, there is a good chance that we will see the pair turn lower once more.
USD/JPY hits trendline support
USD/JPY has declined off the back of the 76.4% retracement, with a head and shoulders ultimately driving a decline in the pair towards the ¥112.23 swing low.
That has also seen the descending trendline come into play, raising the possibility of a rebound from here. Much of it will come down to the FOMC dot plot later today. Until then, there is a chance we will consolidate above trendline support.
IGA, may distribute information/research produced by its respective foreign affiliates 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.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. 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, and 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.
Please see important Research Disclaimer.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.