CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.

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

Comments from Trump send the dollar lower, reversing some of the strength evident in the past week. However, could this just provide a buying opportunity?

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
US dollar notes
Source: Bloomberg

EUR/USD wedge rebounds from key support

EUR/USD is holding up at the key $1.1715 support level this week, with the ability to break below that level likely to prove crucial to the fate of the pair. Interestingly, the $1.1715 level represents the peak of the two-year range that the price broke out of in late July.

With that in mind, watch out for how the pair responds to this crucial support level, alongside trendline support. We would need to see an hourly close above $1.1824 to point towards another leg higher for EUR/USD. 

GBP/USD rallies into 76.4% retracement

GBP/USD has rallied overnight as a result of dollar weakness, with the pair moving into a deep retracement. This rally into the 76.4% Fibonacci level ($1.3030) provides a good selling opportunity for a continuation of the weakness seen over the past week.

As long as the price remains above $1.3053, then further downside remains the likeliest next step for GBP/USD.

USD/CAD likely to break higher from channel

USD/CAD is turning lower from trendline resistance this morning again, with the pair taking a breather from the uptrend instigated last week.

That uptrend is expected to resume once more in time, yet there is a good chance we could see a short-term move lower if the price breaks below trendline support. Should that occur, the $1.2649-$1.2655 zone looks interesting for longs. A bullish outlook remains unless the price breaks below $1.2629.   

This information has been prepared by IG, a trading name of IG 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. 

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.