NFP-fuelled dollar rally likely to fade in EUR/USD, GBP/USD and USD/CAD
NFP-fuelled dollar surge looks to have run its course for EUR/USD, GBP/USD, and USD/CAD.
EUR/USD regaining ground after sharp decline
Friday saw EUR/USD decline sharply off the back of a strong set of US jobs numbers. We are starting to see some of that move reversed today, with the pair regaining some ground ahead of a big week of economic and political events.
Watch out for $1.1066 resistance up ahead, with a break through there pointing towards further short-term upside. Given the medium-sized retracement seen over the course of Friday, a break back below $1.1039 would signal a deeper move coming to pass.
GBP/USD breaks into another fresh high
GBP/USD has continued its ascent, with the pair breaking through the $1.3166 peak from Friday.
This points towards further upside to come, with markets clearly feeling optimistic about the upcoming election. As such, long positions are favoured here, with a break back below $1.31 required to negate this bullish outlook.
USD/CAD turning lower from key resistance
USD/CAD saw a sharp rise on Friday, with a strong US jobs report being enhanced by an unimpressive report from Canada.
However, those gains appear to be subsiding here, with the price having run into the $1.3271 resistance level. With the stochastic seemingly about to roll over from overbought territory, watch for a possible short-term decline today. A break through $1.3271 would be required to negate this potential move.
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