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

While the dollar has been seeing some weakness creep back in, further gains against the EUR, GBP and CAD seem likely for the greenback.

Pound and dollar
Source: Bloomberg

EUR/USD continues to retrace following breakdown

EUR/USD is continuing its ascent following Friday’s sharp sell-off. That move on Friday seemed to pave the way for a period of weakness for the pair and as such this current rally looks like a retracement before we sell off once more.

So far we have seen a break back into the 50% retracement, but any further upside would look like a good selling opportunity as long as the price does not break above $1.1910.

EUR/USD price chart

GBP/USD pauses, yet further downside expected

GBP/USD is in consolidation mode following a sharp downturn last week. We are likely to see further weakness, yet for now there is a chance we could see a retracement of the fall from $1.3164.

As such, a move lower from here would be a selling opportunity on the break below $1.3013. Otherwise, a rally from here would bring us into Fibonacci resistance, where the deeper retracement provides the better selling opportunities. A bearish view remains in play unless we see a move back above $1.3164.

GBP/USD price chart

USD/CAD retraces, yet rebound likely

USD/CAD has moved lower into a 70% retracement since yesterday’s strong move higher. Another rally is likely to be around the corner and the deep retracements between 70% and 76.4% are welcome as buying opportunities.

A break below $1.2630 would be required to negate this current bullish outlook. 

USD/CAD price chart

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