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

US dollar strength continues to dominate here, as the market gears up for Friday’s NFP release.

Euro and dollar notes
Source: Bloomberg

GBP/USD struggles to make gains
Having seen the mid-August rally come to an end, cable has now found itself stuck in a holding pattern in the range $1.3060 - $1.3120.

We are seeing the moving averages roll over on the hourly chart, so the approach seems to be shifting back to ‘sell the rallies’, with any continued price action below $1.3150 indicating that the sellers are in charge. Below $1.3050, the pair will target the mid-August lows at $1.2850.

GBP/USD chart

EUR/USD heading lower
There seems little sign of an end to the downtrend here, with EUR/USD seemingly intent on heading back to the early August low around $1.1070. Below this, we would look to the late July lows at $1.0950.

Rallies back towards $1.1223 would be seen as selling opportunities for the time being, as USD strength continues to dominate. However, a close above $1.1250 in coming sessions would likely signify that a new upward move is beginning. 

EUR/USD chart

USD/CAD makes up losses
This pair has assiduously clawed back losses over the past two weeks, with the next area to watch being the C$1.32 peak from 5/8 August. Dips may well see fresh buyers, with Canadian GDP data today and then NFPs later in the week providing plenty of potential for volatility in this pair. Some support may be found at the 100 and 200-hour moving averages, at C$1.2991 and C$1.2945 respectively.  

USD/CAD chart

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