FX majors: Levels to watch in today’s trade

  • EUR/USD: Downtrend re-ignited again overnight post-Fed and we are sitting right on last week’s lows at 1.2855. A clean break below here targets a weekly pivot near 1.2750. Price action from the last few days suggests that resistance levels should now emerge near 1.2920/30.
  • AUD/USD: Another pair with a nasty reversal lower over the last session and the target is a previous pivot near .8870/90. Similar to EUR/USD, the downtrend is firmly in control and levels near .9020/30 will attract plenty of sellers.
  • Cable: Has remained fairly neutral between 1.62/1.63 as the pound makes gains on the crosses in the face of a likely No-to-independence vote later today. Best avoided over the next few sessions unless you are a professional GBP trader.
  • USD/JPY: This pair has accelerated after some brief consolidation near 107.00. Any dips towards 107.50 now provide buying opportunities whilst the obvious target will be heavy optionality at 110.00.

Good luck today.

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