EUR/USD, GBP/USD and USD/CAD begin to reverse
EUR/USD, GBP/USD and USD/CAD begin to show signs of an impending dollar-negative reversals.
EUR/USD rises through short-term resistance
EUR/USD managed to rally through the $1.1043 resistance level on Friday, negating the short-term bearish trend that has been in play. Whether the current move we are seeing is a retracement or beginning of a move through $1.1179 remains to be seen.
However, with that rise through near-term resistance taking place, there is a good chance that we see further upside from here. The next important hurdle comes at $1.1073, which was the double top neckline. A rise through there would point towards further upside as we regain the ground lost throughout the first two weeks of November.
GBP/USD pushing towards key resistance level
GBP/USD has been rising through the Fibonacci resistance levels over the past week, with the price now past the deepest level of 76.4%.
This means that we are now very close to breaking out of the short-term downtrend, with a rise through $1.2976 required to bring about a wider bullish outlook. As such, today will be dominated by the question of whether we will see that level broken to bring about a new bullish outlook for this pair.
USD/CAD rolling over after rally towards Fibonacci resistance
USD/CAD has been gaining ground over the past two weeks, with hte price rising back towards the 76.4% Fibonacci resistance level at $1.3276. While the price did not explicitly touch that level, we are now seeing bearish reversal signs in intraday price action.
The break below $1.3216 and $1.3212 negate the trend of higher lows, bringing a head and shoulders formation into play. Thus, further downside looks likely from here, with a break through $1.3275 Fibonacci resistance required to bring about a more positive outlook.
This information has been prepared by IG, a trading name of IG US LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. Any research provided should be considered as promotional and was prepared in accordance with CFTC 1.71 and designed to promote the independence of investment research. See our Summary Conflicts Policy, available on our website.
Start trading forex with insights from Real Vision
Discover a world of cutting-edge financial media from Real Vision, with a year's free subscription when you open and fund an IG account.*
- Exclusive insights from top financial minds, including Mark Cuban, Kyle Bass and Stanley Druckenmiller
- Thousands of videos, covering a massive range of financial topics, with new content released daily
- Easy access to Real Vision in the IG web platform
*Minimum fund of $500 to qualify for Real Vision TV access; minimum fund of $5000 for Real Vision TV, Macro Insider and Think Tank.
Live prices on the most popular forex markets