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

Both sterling and the euro have moved off the lows from Thursday’s session, while the Aussie has encountered key resistance.

Yen and US dollar notes
Source: Bloomberg

GBP/USD stays off weekly-lows

The pair was knocked back yesterday by news the prime minister will give a speech on her Brexit policy next Tuesday.

However, it found some support around $1.2150, crucially holding above the lows of the week at $1.2046. A further rally could target $1.2270 and then $1.2378. 

GBP/USD price chart

EUR/USD dip may offer chance to buy

After finishing off the highs yesterday the pair is steadily recovering, with the first target being at $1.0677, and then above here it could target $1.0737 and then $1.0790.

With the rally from the December lows intact, the latest dip may well be a buying opportunity, with a move below $1.05 needed to negate the current bullish outlook.

EUR/USD price chart

USD/JPY gains restricted by ¥115.15

USD/JPY hit support at ¥113.88 yesterday, and then rallied, but so far the ¥115.15 level is constraining any further gains.

A move above this could signal the pullback is over. However, this will only be confirmed with a daily close back above ¥116.

Below ¥115.15 the price may target ¥113.34 and then ¥111.16. 

USD/JPY price chart

AUD/USD looks to continue rally

The impressive rally here has carried the price all the way back to $0.75, last seen in mid-December.

Now it must post a close above this level to open the way to $0.7572. A failure to push higher today, and then a close below $0.7464, would suggest that the rally has come to an end. 

AUD/USD price chart

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa 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. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.