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

EUR/USD appears to be showing signs of strength despite the recent dollar resurgence. Meanwhile, GBP/USD consolidation awaits confirmation, while USD/CAD continues its ascent.

GBP notes
Source: Bloomberg

EUR/USD showing initial signs of strength

EUR/USD has stood out this week, with the euro resisting the dollar strength that has dominated other pairs. The bullish wedge we have seen form throughout the week has clearly respected the crucial $1.1715 support level. With the price having broken through the notable $1.1770 resistance level, there are initial signs that we could see the pair reverse higher from here. 

Once more, the stochastic is showing us that momentum is not on the side of the downtrend. With that in mind, it looks more attractive to go long unless the price breaks below $1.1704 support. 

EUR/USD chart

GBP/USD consolidating above key support

GBP/USD failed to really follow through in the wake of the 76.4% retracement sell-off, with the price subsequently trading sideways. We need to see a break back below $1.2933 to provide a strong bearish signal for the medium term, and until then there is a chance we are seeing a deep retracement of the rally from $1.2933.

As such, while a break below $1.2952 would be notable, we need to see a move below $1.2933 to provide a confident bearish continuation view. Otherwise, a move back above $1.3053 would bring a more bullish shift. 

GBP/USD chart

USD/CAD continues to channel higher

USD/CAD has been weakening this morning, following yet another move into trendline resistance. Given the nice uptrend we have been seeing this week, another move to the upside seems likely from here.

With that in mind, a bullish view remains in play unless we see a move back below $1.2695.

USD/CAD chart

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