EUR/USD and GBP/USD weaken, yet bearish USD/CAD highlights potential dollar decline
EUR/USD leads the losses, with USD/CAD expected to follow. Meanwhile, GBP/USD losses have taken it into key support.
EUR/USD continues to trend lower, as it closes in on two-year low
EUR/USD has continued to trend lower, with the break below the 76.4% retracement level pointing towards a possible continued breakdown. With the price falling below $1.1052 support, we are now looking towards $1.1027 as the next key support level of note.
Ultimately, this is part of a wider bearish trend that has seen the pair create lower lows throughout 2019. Thus, while we are likely to see further downside, those losses would likely be limited in nature beyond $1.1027. To the upside, we would need a break through $1.1154 to bring a more bullish picture.
GBP/USD drifts lower, yet breakdown not assured
GBP/USD has seen weakness throughout the second half of the week, with fears of a no-deal Brexit continuing to hurt sentiment. However, we are yet to truly break out from this recent bullish trend, with the pullback into 76.4% Fibonacci support ($1.2156) marking the low of the week.
With that in mind, watch out for whether the pair can break below that same low as an indicator of where we go from here. Ultimately, we would need a break below $1.2109 to take us out of the recovery phase that has been in play over the second half of August.
USD/CAD rebounds into trendline resistance
USD/CAD has been showing signs of a potential bearish reversal, with the trendline and $1.3251 break highlighting a possibility that the long-term downtrend could come back into play.
With the price having rallied into short-term trendline resistance, there is a good chance we could see the price turn lower from here. Thus, a bearish outlook remains in play, with a break through $1.3319, and ultimately $1.3345, needed to signal a continuation of the bullish trend in play since the July low.
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