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.

Haven dollar demand drives EUR/USD, GBP/USD and USD/CAD

Haven flows help the dollar, while looks likely to gain further within EUR/USD, GBP/USD, and USD/CAD.

EUR/USD breaks key support amid dollar resurgence

EUR/USD slipped back below the $1.1688 support level yesterday, bringing an end to the more bullish outlook seen of late.

The prior break through $1.1832 did provide a potential bullish signal, yet the risk of a wider retracement of the $1.2011-$1.161 did remain. With the price having broken below $1.1688, it looks likely that the recent rally was such a retracement, with further downside looking likely from here. With that in mind, a bearish outlook is in play unless the price breaks through the $1.1759 swing high.

GBP/USD falls back towards key support level

GBP/USD has similarly been on the decline, with the dollar resurgence seen over the course of the week bringing us back towards the crucial $1.2863 support level.

A break below that point would signal an end to the recent trend of higher lows, bringing a more bearish picture once more. Thus the ability or inability to break below $1.2863 will dictate the short-term outlook for this pair.

USD/CAD looks likely to rise once more

USD/CAD has been on the rise as a double whammy of weaker energy prices and risk-off sentiment helping to accelerate the reversal of a long-standing downtrend. The rise through $1.3259 provides the completion of a bullish double bottom formation, with the price subsequently heading towards the $1.342 breakout level.

While we have not seen that level taken out yet, there is a good chance we will continue to move higher after this recent retracement. As such, further upside looks likely, with a decline below $1.3278 required to bring about expectations of a more drawn out retracement stage. Until then, this recent resurgence looks likely to continue apace.

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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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