Slide in EUR/USD and EUR/GBP
EUR/USD in 19-month lows, EUR/GBP probes key support and USD/CAD rallies post FOMC.
EUR/USD slips through 19-month support and nears $1.1111 to $1.1107 zone
This week’s drop in EUR/USD is the greatest seen since June 2021 with it having tumbled right through 19-month support at the $1.1168 mid-June 2020 low. The April and May 2019 troughs at $1.1111 to $1.1107 are thus next in line.
Failure at $1.1107 would engage the more significant $1.1027 to $1.0981 support region. It is comprised of the July and November 2019 lows and the April 2020 high. Further support comes in at the $1.0926 to $1.0879 September 2019 lows.
Previous support, now because of inverse polarity, resistance comes in at $1.1168 to $1.1176. Further minor resistance can be found at the $1.1186 November 2021 low.
EUR/GBP revisits multi-year key support area at £0.8313 to £0.8277
EUR/GBP continues its slide from this week’s high at £0.8423 and once more puts pressure on the broken resistance line at £0.8314. It is thus trading back in the upper reaches of its £0.8313 to £0.8277 key support area which contains the December 2016, April 2017, December 2019 and February 2020 lows. Because of the confluence of lows seen in this vicinity over several years, it is technically important and is expected to hold for now.
Should this not be the case, one would have to allow for the 200-month simple moving average (SMA) at £0.8184 to be reached. Minor resistance above the 5 January low at £0.8335 can be spotted at the 24 January low at £0.8351. While the next higher November trough and 18 and 21 January highs at £0.8377 to £0.8381 cap, downside pressure is once again prevalent.
USD/CAD’s breakthrough two-month resistance line eyes December peak at C$1.2964
In the wake of the Bank of Canada (BoC) rate decision to hold the overnight rate at 0.25% earlier this week and the US Federal Reserve’s (Fed) hawkish stance, USD/CAD cleared its two-month resistance line on its second attempt. The cross is thus aiming for its early-January high at C$1.2814 and the early December high at $1.2855. Further up key upside targets consist of the September and December peaks at C$1.2896 to C$1.2964.
Good support can be spotted between the early- and late-December lows as well as the breached resistance line at C$1.2622 to C$1.2608.
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
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
