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.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
See an opportunity to trade?
Go long or short on more than 16,000 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