FX levels to watch: EUR/USD and USD/CAD
EUR/USD is taking a breather as it approaches a key bullish breakout level. Meanwhile, USD/CAD looks set to continue its consistent uptrend.
EUR/USD looks set for bullish breakout
EUR/USD has been moving higher since the 61.8% retracement seen in the first half of last week. That comes off the back of a rally which took the pair above both the $1.1443 and $1.1473 swing highs. That move provided a clue that the subsequent selloff was likely to be a short-term phenomenon before we break higher from this recent period of consolidation.
With the pair having moved close to the $1.1486 peak from last week, a break above that level should provide us with a bullish breakout signal and potential period of more clear-cut upside. Until then, the weakness we are currently seeing looks like a bullish continuation pattern or retracement.
USD/CAD uptrend looks set to persist
USD/CAD has been gaining ground consistently throughout December, despite any fears over the US government shutdown. That uptrend has taken us through the top of a rising channel formation, with the price instead respecting the top ascending trendline as newfound support.
This is likely to persist, with further upside expected as long as we do not see a break below the recent swing lows of $1.3595 and $1.3566.
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.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets