​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.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

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

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.