EUR/USD, GBP/USD and USD/CAD see dollar weakness
Dollar under pressure amid sharp moves for EUR/USD, GBP/USD and USD/CAD.
EUR/USD rallies to complete double bottom
EUR/USD has managed to break through the crucial $1.1097 resistance level this week, completing a double bottom formation in the process. That signals further upside to come, with any short-term downside looking like a buying opportunity.
A decline below $1.1066 would negate this bullish view, but unless that happens, further upside seems likely before long.
GBP/USD surges into seven-month high
GBP/USD has resumed the upward surge seen in mid-October, with the break through $1.2976 ultimately providing us with a huge spike for the pound. This looks likely to persist unless we see a big shift towards the Labour Party.
With the current candle alluding to a potential short-term pullback, there is the chance we could see some profit-taking ahead of the weekend. However, any such weakness would be viewed as a precursor to further upside unless we decline below $1.2878.
USD/CAD slumps ahead of jobs report
USD/CAD has finally reversed lower to continue the long-term bearish picture for the pair. The decline below $1.319 signals that impending period of weakness, although the price appears to have stalled this morning.
With that in mind, watch for a break below $1.3158 to bring a renewed short-term bearish signal for the pair. Alternately, with both the Canadian and US jobs reports due today, we could see volatility in either direction. Should such a move come to the upside, it would be perceived as a selling opportunity unless the price breaks through the $1.3319 peak.
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