EUR/USD steady, while GBP/USD and USD/CAD rise
Inflation figures have pushed sterling higher this morning, while USD/CAD has returned to the 200-day SMA.
EUR/USD little-changed in early trading
EUR/USD rebounded on Tuesday, maintaining the uptrend for the time being.
After a steady stair-step move higher over the past three weeks, the index still looks on course to move above $1.10 again, and then on towards the $1.12 level.
A more serious move lower would require a drop back below the 50-day simple moving average (SMA), indicating that the March lows around $1.05 may be tested.
GBP/USD bolstered by inflation news
Stronger wage data on Tuesday supported GBP/USD and allowed it to consolidate after falling back from $1.25, and inflation numbers this morning have provided further impetus.
The overall upward move continues, and last May’s highs at $1.266 become the next target as the pound continues to appreciate against the US dollar. Dips remain buying opportunities for the time being.
A move back below $1.22 would be needed to suggest that a more neutral view prevails.
USD/CAD returns to the 200-day SMA
A push back to the 200-day SMA means that the longer-term move higher may not be entirely finished with USD/CAD. The price has stabilised after its steep drop from the March highs, and a move back above the 200-day SMA and the C$1.34 level could point towards a renewed bounce, particularly if accompanied by a bullish moving average convergence divergence (MACD) crossover.
This might then suggest that a move back towards C$1.356 is in the offing, and potentially back towards C$1.38 over time.
A move back below C$1.33 would negate this view and bring the November 2022 and February 2023 lows around C$1.326 into view as support again.
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. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.