FX levels to watch – GBPUSD, EURUSD, USDCAD

Dollar strength is back for the time being, producing some retracements in the sterling and euro rallies.

EUR/USD forex pair
Source: Bloomberg

GBP/USD looking bearish
With the pair back below $1.44 it looks like we could see some further bearish activity, perhaps as far as the rising trendline on the daily chart, i.e. down towards $1.42. There may be some support around the 50-day simple moving average (SMA) at $1.4288.

Any break higher requires a breach of the area around $1.45, which would then clear the way to the February peak around $1.4670. 

EUR/USD may disappoint bears
Having steadily drifted lower over the past two sessions, EUR/USD may be shaping up for another bounce and a move in the direction of $1.14. Bears will probably be disappointed unless they can push the par below $1.12, which would then point towards the 200-day SMA at $1.1045.

The March rally does look tired, but there is still the possibility of another rally. However, the upside looks contained unless the price can close above the February highs.

USD/CAD retracement appears to be finished
If this pair cannot muster the strength to break above C$1.31, then it looks like the brief retracement is over and we look to Friday’s lows around C$1.2950 and below. The next target would be the lows of October 2015 around C$1.2830.

Any move above C$1.31 would still be regarded as a temporary rally, with a move above C$1.3320 and the 200-day SMA needed to revive a more bullish outlook. 

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