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.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
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
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
