Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

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

The dollar is on the up again, with downtrends in EUR/USD and GBP/USD reasserting themselves. Meanwhile, USD/CAD has been the beneficiary of some dovish talk from the Bank of Canada. 

EUR/USD turns lower

The downtrend line from the February high looks to be coming into play for EUR/USD once again this morning.

A fresh turn lower seems to be underway, with $1.2270 being the first target, followed by $1.2165. A lower high having been created again means that we need a firm push back above $1.2450 to negate the bearish outlook.

GBP/USD hits resistance

While GBP/USD has pushed above the downtrend line from the January high, and has also pushed above last week’s high, it has faltered at $1.40.

Further declines may see a retest of the breakout, around $1.3890, or a move back below would see $1.38 and then $1.37 tested. Above $1.40, the price targets $1.4070 and then $1.4145.

USD/CAD creates new higher low

Yesterday saw a classic example of fundamental news intervening to liven up a market, this time for USD/CAD.

The Bank of Canada (BoC) governor Stephen S. Poloz made a speech widely viewed as dovish, causing the US dollar to gain vis-à-vis its Canadian counterpart. While a new higher high in the uptrend has yet to be posted, a new higher low has been created. Crucially, the price has broken back above C$1.2916 again, which brings C$1.30 and higher into play. 

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.

Find articles by writer