FX levels to watch – EUR/USD, GBP/USD, USD/CAD

While the dollar has been seeing some weakness creep back in, further gains against the EUR, GBP and CAD seem likely for the greenback.

Pound and dollar
Source: Bloomberg

EUR/USD continues to retrace following breakdown

EUR/USD is continuing its ascent following Friday’s sharp sell-off. That move on Friday seemed to pave the way for a period of weakness for the pair and as such this current rally looks like a retracement before we sell off once more.

So far we have seen a break back into the 50% retracement, but any further upside would look like a good selling opportunity as long as the price does not break above $1.1910.

GBP/USD pauses, yet further downside expected

GBP/USD is in consolidation mode following a sharp downturn last week. We are likely to see further weakness, yet for now there is a chance we could see a retracement of the fall from $1.3164.

As such, a move lower from here would be a selling opportunity on the break below $1.3013. Otherwise, a rally from here would bring us into Fibonacci resistance, where the deeper retracement provides the better selling opportunities. A bearish view remains in play unless we see a move back above $1.3164.

USD/CAD retraces, yet rebound likely

USD/CAD has moved lower into a 70% retracement since yesterday’s strong move higher. Another rally is likely to be around the corner and the deep retracements between 70% and 76.4% are welcome as buying opportunities.

A break below $1.2630 would be required to negate this current bullish outlook. 

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. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.