EUR/USD, GBP/USD and USD/CAD begin to reverse
EUR/USD, GBP/USD and USD/CAD begin to show signs of an impending dollar-negative reversals.
EUR/USD rises through short-term resistance
EUR/USD managed to rally through the $1.1043 resistance level on Friday, negating the short-term bearish trend that has been in play. Whether the current move we are seeing is a retracement or beginning of a move through $1.1179 remains to be seen.
However, with that rise through near-term resistance taking place, there is a good chance that we see further upside from here. The next important hurdle comes at $1.1073, which was the double top neckline. A rise through there would point towards further upside as we regain the ground lost throughout the first two weeks of November.
GBP/USD pushing towards key resistance level
GBP/USD has been rising through the Fibonacci resistance levels over the past week, with the price now past the deepest level of 76.4%.
This means that we are now very close to breaking out of the short-term downtrend, with a rise through $1.2976 required to bring about a wider bullish outlook. As such, today will be dominated by the question of whether we will see that level broken to bring about a new bullish outlook for this pair.
USD/CAD rolling over after rally towards Fibonacci resistance
USD/CAD has been gaining ground over the past two weeks, with hte price rising back towards the 76.4% Fibonacci resistance level at $1.3276. While the price did not explicitly touch that level, we are now seeing bearish reversal signs in intraday price action.
The break below $1.3216 and $1.3212 negate the trend of higher lows, bringing a head and shoulders formation into play. Thus, further downside looks likely from here, with a break through $1.3275 Fibonacci resistance required to bring about a more positive outlook.
This information has been prepared by IG, a trading name of IG 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.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
