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

EUR/USD is moving higher, coming off the back of a breakdown. Meanwhile, USD/CAD has rallied out of a wedge pattern, pointing towards further upside to come. 

EUR/USD in rebound mode after key breakdown

EUR/USD has managed to bring itself into a more positive short-term setting. The break below $1.1574 points towards a wider breakdown coming into play soon enough.

However, with the price pushing above $1.1610 over the near term, there is now a good chance we are going to post a retracement before we turn lower once again. Look towards the 61.8% retracement as a potential target for this current period of upside.

GBP/USD consolidates after recent decline

GBP/USD has been consolidating around the $1.2957 breakdown level. The break below that level highlighted a continuation of the wider downtrend.

With that in mind, further losses seem likely, with a break below $1.2920 providing greater confidence that this current consolidation/retracement is over. Otherwise, any short-term upside would be seen as a retracement unless we rally through $1.3173.

USD/CAD wedge break points to further upside

USD/CAD has broken higher from a falling wedge pattern in play over the past fortnight. The break through $1.3039 signals the start of a short-term rebound.

Overnight consolidation has given us a pennant formation, with a break above $1.3075 resistance pointing towards the next leg higher for the pair. A break below the $1.2962 low from yesterday would negate this bullish outlook. 

IGA, may distribute information/research produced by its respective foreign marketing partners 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.

This information/research prepared by IGA or IG Group is intended for general circulation. 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 or 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. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer

Find out more about