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

The dollar is surging amid a flight to safety given the economic demise of Turkey. 

EUR/USD breakdown extends, as traders flock to USD

EUR/USD has extended lower following the clear bearish break that came with a move below $1.1574 last week.

That fall out of a consolidation phase led to a move in the direction of the wider bearish trend. Further downside looks likely, with any rebound likely to provide a selling opportunity. We would need a break above $1.1628 to provide a signal that this sell-off could be over.

GBP/USD continues to decline within downtrend

GBP/USD has continued its downtrend, with the creation of lower highs and lower lows providing a clear clue that the short-term trend is expected to persist.

That means a break above $1.2909 would be required to point towards a stronger rebound. However, that would be perceived as a signal of a retracement of the near-term decline from $1.3214, rather than a wider reversal signal.

USD/CAD rallies higher from wedge formation

USD/CAD has managed to extend its wedge breakout, with the initial break providing us with a nice 76.4% retracement before extending higher.

We have not seen the price move into the 61.8% retracement of the $1.3290-$1.2962 decline. Watch for how we respond to this level as a gauge of whether we are going to take a breather here or not. Should the price respect those levels, it would also give us a better idea of whether this a retracement or in fact a reversal of the wider move (bullish).

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