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FX levels to watch – EUR/USD, GBP/USD, USD/CAD

A weakening of the dollar sees EUR/USD and GBP/USD regaining ground, while USD/CAD pulls back. However, with signs of reversals, will these moves prove fleeting?

anonymous

Publication date : 2017-02-09T09:57:54+0000

Bg eurusd

Source: Bloomberg

EUR/USD showing signs of a resurgence

EUR/USD managed to break into a new intraday high yesterday, with the subsequent pullback forming a bullish wedge. With the price now breaking through the top end of that wedge, the expectation is that we will see a resurgence for the pair. This conforms to the wider picture of higher lows on the daily four-hour charts.

A break below $1.0620 would negate that trend, yet for now it seems like we could be moving into a more bullish stage. Watch out for $1.0705 or $1.0714 as the key near-term resistance zones.

EUR/USD price chart

EUR/USD price chart

EUR/USD price chart

GBP/USD rebounding into Fibonacci resistance

GBP/USD is regaining ground following on from a break below the $1.2412 level. That break provides a clue that we could see further downside to come and, as such, it could be worth watching the 76.4% retracement ($1.2622) as a potential roadblock to further upside.

Ultimately, we would need a break back above $1.2706 to become bullish for the medium-term once more.

GBP/USD price chart

GBP/USD price chart

GBP/USD price chart

USD/CAD wedge likely to break higher

USD/CAD is falling back following a break through C$1.3169 resistance on Tuesday. That provides us with a view that further upside is impending, especially given the wider perspective that this pair keeps bounding from the C$1.3000 region.

With a bullish falling wedge in play, another leg higher seems very likely, with a break back below C$1.3000 required to negate this bullish view. As such, for an intraday signal, a break back above C$1.3169 should suffice to spark another move to the upside.

USD/CAD price chart

USD/CAD price chart

USD/CAD price chart

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa 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. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

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