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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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

US President Donald Trump’s anti-dollar comments have done little to dent the bullish dollar theme, with EUR/USD and GBP/USD expected to fall, while USD/CAD looks set to gain further.  

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EUR/USD turning lower after 61.8% retracement

EUR/USD continues to look bearish, with the pair turning lower from a retracement into the 200-simple moving average (SMA) and 61.8% Fibonacci level.

The break below $1.1613 earlier in the week points towards a likely further deterioration in the pair, with a fall back towards the $1.1575 low seeming likely. This bearish view remains unless the price breaks above $1.1744.

GBP/USD expected to continue recent downtrend

GBP/USD has also rebounded following US President Donald Trump’s comments on the Federal Reserve (Fed) and the appreciation in the dollar yesterday.

However, this is likely to be a short-term phenomenon, with the pair turning lower from the 61.8% Fibonacci level this morning. Interestingly, the initial rebound saw the June low of $1.3049 respected. This points towards a continuation of the downtrend, with a bearish outlook in play unless we break above the $1.3083 swing high.

USD/CAD rebounds to continued recent uptrend

USD/CAD comes into focus today, with a host of Canadian economic data due out this afternoon. Trump’s comments seem to have had little effect upon this pair, with a break higher yesterday sustained.

There is a good chance we will see further upside to come, yet should today’s data points turn USD/CAD lower, it could give us a good buying opportunity. A bullish outlook is in play until we break below the latest swing low of $1.3159.

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.

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