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

Uncertainty within the likes of GBP/USD and USD/CAD is expected to be resolved soon, while EUR/USD could provide a buying opportunity after the recent decline.

USD Source: Bloomberg

EUR/USD tumbles into potential wider retracement

EUR/USD fell below the $1.1422 mark, seemingly paving the way for a wider retracement for the pair.

The break through $1.15 last week sparked a rise in the likeliness of an upside surge after this pullback. Despite us currently having broken into a lower low, we saw something similar in late December which ultimately turned out to be a retracement of the wider rally from $1.127. As such, this is expected to be a similar situation, with the pair likely to find support before long.

Look out for the 76.4% retracement level ($1.1364) as a potential reversal point. A break below $1.1301 would be required to negate the uptrend that is currently in play.

EUR/USD chart

EUR/USD chart

GBP/USD regaining ground after Brexit volatility

Yesterday’s Brexit vote brought about huge volatility as expected, with severe selling in the lead up to the event subsequently reversing once the votes came in. Despite the uncertainty looming ahead, markets seem somewhat unmoved, with tonight’s vote of no confidence unlikely to succeed.

The fact that the GBP/USD broke below $1.2707 points towards the possibility of this rally falling short of the $1.2931 high. However, with the price close to that level, traders should keep an eye out for whether we break above it or not as a gauge of where we go from here. A rally through $1.2931 would signal a continuation of the bullish momentum seen over the past month.

GBP/USD chart

GBP/USD chart

USD/CAD consolidating after recent rebound

USD/CAD is trading within a rising triangle formation, following on from a rebound late last week.

The break through the $1.326 swing-high points towards potential upside coming into play. For now, it is worth watching a break of either $1.3226 or $1.3294 as a precursor to the next leg for this pair.

USD/CAD chart

USD/CAD chart


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.

This information/research prepared by IGA or IGA 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.

Please see important Research Disclaimer.

See an opportunity to trade?

Go long or short on more than 16,000 markets with IG.

Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

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.

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.