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CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

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

Renewed USD weakness has driven some interesting moves in FX markets, with some key trends back in action.

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EUR/USD touches $1.25 again

Yesterday’s remarkable volatility for EUR/USD ended with euro bulls firmly in control, as the dip buyers returned with a vengeance.

The $1.25 area stalled progress in January, so this is the key area to watch now, with a close above here opening the way to $1.2746. Support levels are to be found at $1.2323 and then $1.2165.

EUR/USD price chart

GBP/USD aims for more gains

The rebound goes on here for GBP/USD, with the dip buyers seizing on yesterday’s post-US consumer price index (CPI) weakness with abandon.

The first level to watch for resistance is $1.4067, and if this is broken then we move on to the January high at $1.4345. The uptrend has reasserted itself, and it would need a move back below $1.38 to suggest that the sellers are back in charge.

GBP/USD price chart

USD/CAD plummets from C$1.26

Having spent several days trying to hold above C$1.26, USD/CAD reversed sharply yesterday.

With the sellers back in control, intraday rallies should be sold, with the potential for a move back down to the January lows at C$1.2252. It would require a close above C$1.2650 to reverse this view.

USD/CAD price chart

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