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

Dollar weakness continues apace, following yesterday’s FOMC meeting. However, with GBP/USD hitting major trendline resistance, will we see a move lower or a breakout?

Canadian dollar
Source: Bloomberg

EUR/USD pulls back to massive support level

EUR/USD managed to break through the crucial $1.1715 resistance level yesterday. That means we have now created a 30-month high, with the pair breaking out of a long-term range.

We have seen the price pull back this morning, yet this is unlikely to last. With the low of the day currently coming at that the same breakout level of $1.1715, there is a chance we could move higher from here. Otherwise, any pullback would still be seen as a buying opportunity as long as we do not see a break back below $1.1612.

GBP/USD rallies into trendline resistance

GBP/USD has broken higher once more today, with the price creating a new ten-month high. However, this has brought us into trendline resistance, which represents the top of a long-term rising wedge pattern.

With that in mind, it is worth being somewhat weary about further gains until we see a breakout. Until then, there is a good chance we could start to see the price weaken somewhat from this major historical resistance trendline.

USD/CAD downtrend intact after latest sell-off

USD/CAD sold off once more yesterday, with yet another rally into the 50-100 hour simple moving average (SMA) followed by another move lower. With the price having hit trendline support, there is a chance we could see another short-term bounce, which would simply act as another selling opportunity.

As long as we do not see a break back above $1.2544, it makes sense to sell into any rallies.

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