EUR/USD, GBP/USD and USD/CAD expected to head higher despite consolidation
EUR/USD, GBP/USD and USD/CAD take a breather within the course of their recent recoveries. Are we set for another leg higher before long?
EUR/USD starts to reverse below resistance
EUR/USD is turning lower this morning, following a rally towards the crucial $1.1179 resistance level. If we break through that point, it would provide a wider bullish continuation signal.
However, with the price and momentum starting to roll over, we are at risk of not taking that level. Ultimately, we need to see a break below $1.1131 or above $1.1179 to dictate the outlook from here.
GBP/USD starts to weaken, yet recovery remains in play
GBP/USD has similarly seen some selling come into play, following on from a week dominated by buying. That short-term uptrend remains intact, and will only be negated should we see a break below $1.2925.
However, until that happens, the pair is likely to resolve with another move towards the upside. Keep an eye out for this morning’s appearance from Brexit Party leader Nigel Farage as a potential driver of sterling volatility.
USD/CAD expected to break higher once again
USD/CAD has been consolidating off the back of Wednesday’s sharp move higher. With the pair having declined into trendline support, we have seen USD/CAD gain ground over the course of the week.
The bullish wedge breakout has taken us into a bullish trend and that is expected to continue. Watch for a break through the $1.3173 level to signal the beginning of the next leg higher.
This information has been prepared by IG, a trading name of IG Markets 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.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets