EUR/USD, GBP/USD and USD/CAD see dollar weakness
Dollar under pressure amid sharp moves for EUR/USD, GBP/USD and USD/CAD.
EUR/USD rallies to complete double bottom
EUR/USD has managed to break through the crucial $1.1097 resistance level this week, completing a double bottom formation in the process. That signals further upside to come, with any short-term downside looking like a buying opportunity.
A decline below $1.1066 would negate this bullish view, but unless that happens, further upside seems likely before long.
GBP/USD surges into seven-month high
GBP/USD has resumed the upward surge seen in mid-October, with the break through $1.2976 ultimately providing us with a huge spike for the pound. This looks likely to persist unless we see a big shift towards the Labour Party.
With the current candle alluding to a potential short-term pullback, there is the chance we could see some profit-taking ahead of the weekend. However, any such weakness would be viewed as a precursor to further upside unless we decline below $1.2878.
USD/CAD slumps ahead of jobs report
USD/CAD has finally reversed lower to continue the long-term bearish picture for the pair. The decline below $1.319 signals that impending period of weakness, although the price appears to have stalled this morning.
With that in mind, watch for a break below $1.3158 to bring a renewed short-term bearish signal for the pair. Alternately, with both the Canadian and US jobs reports due today, we could see volatility in either direction. Should such a move come to the upside, it would be perceived as a selling opportunity unless the price breaks through the $1.3319 peak.
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
