EUR/USD, GBP/USD and USD/CAD expected to head higher despite consolidation
EUR/USD, GBP/USD and USD/CAD take a breather within the course of their recent recoveries. Are we set for another leg higher before long?
EUR/USD starts to reverse below resistance
EUR/USD is turning lower this morning, following a rally towards the crucial $1.1179 resistance level. If we break through that point, it would provide a wider bullish continuation signal.
However, with the price and momentum starting to roll over, we are at risk of not taking that level. Ultimately, we need to see a break below $1.1131 or above $1.1179 to dictate the outlook from here.
GBP/USD starts to weaken, yet recovery remains in play
GBP/USD has similarly seen some selling come into play, following on from a week dominated by buying. That short-term uptrend remains intact, and will only be negated should we see a break below $1.2925.
However, until that happens, the pair is likely to resolve with another move towards the upside. Keep an eye out for this morning’s appearance from Brexit Party leader Nigel Farage as a potential driver of sterling volatility.
USD/CAD expected to break higher once again
USD/CAD has been consolidating off the back of Wednesday’s sharp move higher. With the pair having declined into trendline support, we have seen USD/CAD gain ground over the course of the week.
The bullish wedge breakout has taken us into a bullish trend and that is expected to continue. Watch for a break through the $1.3173 level to signal the beginning of the next leg higher.
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