Dollar under pressure for EUR/USD, GBP/USD and USD/CAD
The US dollar looks likely to remain under pressure for EUR/USD, GBP/USD, and USD/CAD
EUR/USD likely to push higher again
EUR/USD is turning higher after the latest short-term pullback, with the pair coming off the back of a rise into the 1.1179 resistance level.
The tentative break through that level provided us with a new three-month high last week, signalling a potential continuation of that bullish move before long. With that in mind, further upside seems likely from here, with a bullish outlook in play unless we see a break below 1.1103.
GBP/USD begins to strengthen after pullback
GBP/USD saw sharp gains off the back of the election exit poll on Thursday night, with that move being retraced throughout the course of the election itself.
It is highly unlikely that we see a move back below the 1.305 lows seen prior to the election, and thus any downside is likely to be a short-term phenomenon before we move higher once again. As such, a bullish outlook remains in play unless that 1.305 level is broken.
USD/CAD breaking down to continue recent reversal
USD/CAD has been deteriorating over the course of December, with the index looking likely to maintain the long-term bearish trend once more.
The creation of lower highs and lows remains in play thanks to a break below 1.315 this morning. That signals a likely drive lower from here, with the 1.3068-1.3042 zone looking a strong possibility before too long. Watch out for the ascending trendline too as the pair continues to trade within a wider triangle formation.
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
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.