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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 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 ensure that you fully understand the risks involved.

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

A surge in the dollar is driving EUR/USD and GBP/USD lower, yet with the CAD strengthening, we are seeing USD/CAD tumble in a move that could provide a buying opportunity.

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EUR/USD continues to decline

EUR/USD has continued its descent, with the pair starting to slow down in that move.

There is a good chance that we will soon see some form of rebound, yet this would likely provide us with another shorting opportunity. A bearish outlook remains in play unless we see a break through the $1.1428 swing high.

EUR/USD price chart

GBP/USD downtrend remains in play

GBP/USD is expected to continue its downtrend, with the ongoing creation of lower highs and lower lows pointing towards further losses to come.

This morning has seen a temporary bounce for the pair, but this is unlikely to last, with a rally above $1.2828 required to negate this bearish outlook.

GBP/USD price chart

USD/CAD falling from Fibonacci resistance

USD/CAD has been drifting lower from the 61.8% resistance this week, with the pair seemingly in retracement mode once more. This period of weakness is unlikely to last, with the 76.4% retracement ($1.304) looking like an interesting area to look for longs.

Until then, there is a chance we could see further short-term downside. A break below $1.30 would signal that the 61.8% retracement seen last week is the total sum of the upside. Until that happens, there is a good possibility that we will soon see the pair turn upwards once more.

USD/CAD price chart

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