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

While the dollar has been seeing some weakness creep back in, further gains against the EUR, GBP and CAD seem likely for the greenback.

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.
Pound and dollar
Source: Bloomberg

EUR/USD continues to retrace following breakdown

EUR/USD is continuing its ascent following Friday’s sharp sell-off. That move on Friday seemed to pave the way for a period of weakness for the pair and as such this current rally looks like a retracement before we sell off once more.

So far we have seen a break back into the 50% retracement, but any further upside would look like a good selling opportunity as long as the price does not break above $1.1910.

GBP/USD pauses, yet further downside expected

GBP/USD is in consolidation mode following a sharp downturn last week. We are likely to see further weakness, yet for now there is a chance we could see a retracement of the fall from $1.3164.

As such, a move lower from here would be a selling opportunity on the break below $1.3013. Otherwise, a rally from here would bring us into Fibonacci resistance, where the deeper retracement provides the better selling opportunities. A bearish view remains in play unless we see a move back above $1.3164.

USD/CAD retraces, yet rebound likely

USD/CAD has moved lower into a 70% retracement since yesterday’s strong move higher. Another rally is likely to be around the corner and the deep retracements between 70% and 76.4% are welcome as buying opportunities.

A break below $1.2630 would be required to negate this current bullish outlook. 

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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.