CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

FX levels to watch – GBP/USD, AUD/USD, USD/CAD

Dollar weakness is the theme at present, although today’s Federal Reserve meeting could provide some interesting volatility.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-02-01T09:54:36+0000

Pound and dollar

Source: Bloomberg

GBP/USD eyes $1.2865

Weakness in cable yesterday was swiftly reversed, with the price back above $1.25 and now looking set to challenge the highs of late January around $1.2650.

From here the next target would be $1.2865 and then $1.3125. Yesterday’s bounce confirms the price action from 24 January, namely that $1.24 is a key support area and that a bigger downward move will need a drop through this level.

GBP/USD

GBP/USD

GBP/USD

AUD/USD looks to $0.78

A steady recovery from the $0.75 area has meant that bears have been disappointed, so now we look to see whether the $0.76 area can be broken for the pair. If so then the way is clear to $0.77 and potentially to $0.78.

A breakdown from here would suggest the inside trendline that has been in place since mid-2013 has reasserted itself and we would see a drop to $0.75 and then to $0.74.

AUD/USD

AUD/USD

AUD/USD

USD/CAD could target 200-day SMA

C$1.30 continues to hold, as it has done since mid-January. This provides a good base to work against, although upside momentum has been lacking of late.

The price appears to be running out of upside momentum, so we could see another test of C$1.30.

A break below here could be a trapdoor moment to C$1.29 or C$1.27 for USD/CAD. Any upside move targets the 200-day simple moving average (SMA) at C$1.3127 and then C$1.3180.

USD/CAD

USD/CAD

USD/CAD

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