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

The dollar appears to be coming back into favour, with GBP/USD completing a double top and USD/CAD breaking through key resistance.

Forex
Source: Bloomberg

EUR/USD pulls back towards fib support

EUR/USD has been retracing the rally from $1.0620, with the pair pulling back in towards the 76.4% retracement overnight.

We do have a clear uptrend in place, which would only be undermined by a break back below $1.0620. Until then, another leg higher remains a distinct possibility.

EUR/USD price chart

GBP/USD completes double top pattern

GBP/USD has broken below the crucial $1.2412 support level, which represents the neckline of a double top formation.
A closed hourly candle below that level would provide a bearish signal, with the next key support level all the way down at $1.2254.

GBP/USD price chart

USD/CAD breaking above key resistance

USD/CAD is in the process of breaking above the crucial $1.3169 resistance level this morning, completing a short term bullish reversal.
Given that this has taken place around the crucial historical support level of $1.3000 (October 2016 low), there is reason to believe we could see further gains. As such, a bullish outlook is in place unless we see an hourly close below $1.3074.

USD/CAD price chart

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