Dollar weakness could bring EUR/USD and GBP/USD gains, while USD/CAD looks lower
Dollar weakness could bring further strength for EUR/USD and GBP/USD, while USD/CAD looks set to head lower once again.
EUR/USD pullback unlikely to last
EUR/USD has been on the back foot for much of this week, with the pair seemingly retracing after a strong surge on Friday.
However, the ongoing recovery phase highlights a strong chance that we are looking at a retracement here, with a bullish view in play unless we break below the $1.199 mark.
GBP/USD takes breather after recent surge
GBP/USD experienced a rapid appreciation on Monday, with the pair building on the strength seen last week. We have seen the pair consolidate since that rise, but there is a good chance we are set to see another burst higher once we exit this current brief phase of consolidation.
With the price having moved well beyond the 76.4% Fibonacci resistance level, we have greater confidence that this is part of an all-out recovery that will ultimately drive us up through the $1.4241 resistance level. As such, the question from here is whether we are going to break higher or retrace from here. That should be answered by whether we rise through $1.4166 or break below $1.4104.
USD/CAD breaking lower after brief pause
USD/CAD has been on the slide of late, with the pair continuing its impressive long-term downtrend.
With price having formed a brief consolidation phase yesterday, we are looking to see another strong move lower from here. With that in mind, it makes sense to expect further downside should we break below the C$1.2079 low.
This information has been prepared by IG, a trading name of IG Markets 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.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
