GBP/USD and AUD/USD edge higher, while USD/CAD rally stalls
Both sterling and the Australian dollar have managed to move up slightly against the US dollar, while recent USD/CAD strength seems to have been halted for now.
GBP/USD stabilises around $1.27
The consolidation of the past two months continues here. GBP/USD has shown little enthusiasm for a fresh move higher, caught between higher UK inflation and reducing expectations around an early Federal Reserve (Fed) rate cut.
Downside has been contained just above $1.26, so a more substantial move lower requires a close below this level. This would then see the price target the early-December lows around $1.25.
Recent upside has been capped below $1.28, leaving this as the principal barrier to break for any more sustained rally to develop.
AUD/USD sees buyers emerge
AUD/USD price has halted its decline from the December highs, and may yet be able to move higher again.
Support has been found around $0.655, as was the case in early December. This might then lead to a resumption of the move higher, which could see the price head back towards $0.665, and then on above $0.67.
Sellers will need a close below $0.652 to suggest that a fresh bearish view is beginning to form.
USD/CAD rally stumbles
The strong rally of January has run into some selling for USD/CAD, with the price unable to push on above the 50-day simple moving average (SMA).
A more substantial move lower may develop if the price closes back below C$1.34, and could mark the beginning of a move back to the December lows around C$1.32.
Alternately, a recovery above C$1.353 could see fresh upside, leading on to another test of C$1.36.
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.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
