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 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. 

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