CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Dollar weakness boosts EUR/USD and GBP/USD, while USD/CAD turns lower

The dollar continues to weaken, lifting EUR/USD, and GBP/USD, while USD/CAD looks likely to continue its wider bearish trend.

EUR/USD starts to regain ground after latest decline

EUR/USD has been a consistent underperformer of late, with the latest declines taking the pair into a fresh five-month low last week. However, we are continuing to build on that rise seen last week as price passes through trendline resistance. That does point towards the potential for further short-term upside, yet we are likely to be seeing a retracement phase rather than an all-out reversal.

With that in mind, short-term upside is likely to provide a selling opportunity. Particular interest comes around the 61.8% and 76.4% Fibonacci levels ($1.188-$1.1921) for a potential bearish reversal. Ultimately, whether we see a deep retracement or not, a bearish wider outlook remains unless price rises through $1.20 resistance.

GBP/USD rises towards Fibonacci resistance

GBP/USD has also been gaining ground, with the pair pushing towards the 76.4% Fibonacci resistance level at $1.3935. The recent trend of lower highs thus comes into play, with a bearish reversal still possible around that impending resistance level.

A move below the $1.3811 low add greater credence to the notion that this latest rise is simply a retracement before we head lower once again. Ultimately, we would need to see a break through $1.4017 to break from the recent bearish trend and bring a resumption to the uptrend that dominated the past year.

USD/CAD likely to continue its recent decline

USD/CAD has turned lower from trendline and Fibonacci resistance (76.4%), with the pair looking to continue the downtrend that has dominated the past year.

A short move higher in early trade does little to change that bearish view, with the recent breakdown looking likely to continue from here. With that in mind, bearish positions are favoured from here. A rise through $1.2595 would be required to negate the bullish intraday trend that is gradually building from this 76.4% Fibonacci reversal.


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.

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
  • Try a risk-free trade
  • 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

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.