FX levels to watch: EUR/USD, GBP/USD and USD/CAD

The pound looks likely to fall once again despite this morning’s rebound. Meanwhile, EUR/USD has reached a key support level amid recent declines.

EUR/USD tumbles from key trendline resistance

EUR/USD managed to fall sharply yesterday, amid a burgeoning fiscal crisis in France.

Interestingly, we saw the price respect the descending trendline that seemed to be negated on Friday. This has taken us into trendline and horizontal support, with the price currently consolidating marginally above the notable $1.1305 level. A break below that support level would provide a bearish outlook going forward. However, until broken, there is a chance we could rebound from here to continue the consolidation that has been in play over recent weeks.

GBP/USD rebound unlikely to last

GBP/USD has been rebounding off the back of a vote of no confidence in UK Prime Minister Theresa May, with the rising prospect of a delayed Article 50 helping drive the pound forward.

However, this also raises the possibility of an even more volatile and unpredictable Brexit process should May leave her post. With that in mind, there is a good chance that we could see this rebound fall short once more, with shorts still preferred unless we break above the $1.2639 level.

USD/CAD faltering below key resistance

USD/CAD has started to slow down from its recent rebound, with the key $1.3445 level still yet to be surpassed.

The inability to break that level points towards a potential bearish shift for the pair given the recent breakdown below $1.3182. Watch out for the ability or inability to break above $1.3445 to provide us with a key signal as to whether this uptrend is going to continue or not.

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