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

The dollar is on the up again, with downtrends in EUR/USD and GBP/USD reasserting themselves. Meanwhile, USD/CAD has been the beneficiary of some dovish talk from the Bank of Canada. 

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.

EUR/USD turns lower

The downtrend line from the February high looks to be coming into play for EUR/USD once again this morning.

A fresh turn lower seems to be underway, with $1.2270 being the first target, followed by $1.2165. A lower high having been created again means that we need a firm push back above $1.2450 to negate the bearish outlook.

GBP/USD hits resistance

While GBP/USD has pushed above the downtrend line from the January high, and has also pushed above last week’s high, it has faltered at $1.40.

Further declines may see a retest of the breakout, around $1.3890, or a move back below would see $1.38 and then $1.37 tested. Above $1.40, the price targets $1.4070 and then $1.4145.

USD/CAD creates new higher low

Yesterday saw a classic example of fundamental news intervening to liven up a market, this time for USD/CAD.

The Bank of Canada (BoC) governor Stephen S. Poloz made a speech widely viewed as dovish, causing the US dollar to gain vis-à-vis its Canadian counterpart. While a new higher high in the uptrend has yet to be posted, a new higher low has been created. Crucially, the price has broken back above C$1.2916 again, which brings C$1.30 and higher into play. 

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.