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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.

Dollar weakness drives EUR/USD and GBP/USD gains, while USD/CAD breaks lower

FOMC-fuelled dollar weakness sparks EUR/USD and GBP/USD gains, while USD/CAD breaks through Fibonacci support.

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EUR/USD drives higher after recent upside break

EUR/USD has built on the rise through $1.1831, with the pair driving into a fresh two-week high. The gradual nature of the recent downtrend did point to such a move likely coming into play before long, and we are now looking for clues as to where this rise will push into.

The wider Fibonacci retracement from $1.1975 is of particular interest, with $1.189 and $1.1922 representing the two notable deep Fib levels worth considering from the bears to come back into play once again. Until then, further short-term upside looks likely from here.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

GBP/USD breaks key resistance to end recent bearish threat

GBP/USD has managed to push up through the $1.391 resistance level overnight, with the pair negating the downtrend in play over the course of June and July.

With a more bullish outlook now confirmed, it makes sense to simply follow the intraday trend of higher lows, with a bullish outlook in play until the price breaks back below $1.3843.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

USD/CAD breaks Fibonacci support after recent consolidation

USD/CAD has finally broken from its consolidation phase, with the pair falling into a two-week low this morning.

Crucially, that brings us back below the 76.4% Fibonacci support level as we close in on the key swing low of $1.2425. A break back below that level would confirm the end of the uptrend that has dominated the past two months. As such, watch out for further downside from here, with a break below $1.2425 in particular providing greater confidence in that bearish outlook.

USD/CAD chart Source: ProRealTime
USD/CAD chart Source: ProRealTime

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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