EUR/USD, GBP/USD and USD/CAD breaking higher after recent declines
EUR/USD, GBP/USD and USD/CAD all break higher ahead of BoC and Fed rate decisions.
EUR/USD reverses higher after period of downside
EUR/USD has broken out of its recent bearish phase, with the retracement seemingly over.
The break through $1.1106 brought about the first signal that this trend could be over, and we have since seen price fall back into that level to treat it as new-found support. With that overnight retracement proving relatively shallow, a break through $1.1118 provides us with a new buying opportunity, with stops below the $1.1106 support level.
GBP/USD starts to build new bulling trend once again
GBP/USD has also taken a turn for the better, with the pair breaking higher after the UK election was finally approved for 12 December. This provides some clarity and expectation of a resolution to the ongoing deadlock in UK politics.
For this pair, the break through $1.2876 provided the initial shift in mentality, with the subsequent pullback deemed a retracement to buy into. With the price on the rise, it is likely we will see a break through $1.2905 today, as GBP/USD continues its bullish reversal. A break below $1.2806 would be required to negate this bullish outlook.
USD/CAD breaks higher from wedge formation
USD/CAD has been on the slide over the course of October, with the price falling back into a crucial zone of support between $1.3069 and $1.3016. We are also trading around a long-term ascending trendline dating back to 2012.
With the price breaking higher from a wedge formation around this zone of support, there is a good chance that we will build bullish momentum from here. As such, while we could see further downside for the short term, watch out for another leg higher before long. This pair is particularly notable today given the rate decisions from both the Bank of Canada (BoC) and Federal Reserve (Fed). As such, while we do not know how things are going to play out, a bullish outlook would hold much more value if we still see this pair remain above $1.3042 by the end of the day.
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