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

Both the euro and sterling are still eyeing up further gains, while the Canadian dollar was not too bothered by yesterday’s rate increase.

EUR/USD aims for renewed surge

The EUR/USD price moved below the $1.2195 support level but then recovered, and may well be poised for a bounce.

With momentum heavily oversold we could see another bounce, which would see the pair head back towards $1.2250, $1.23 and possibly higher. Below $1.2150, the $1.2092 level comes into play. 

GBP/USD steadies before next run higher

GBP/USD continues to enjoy bullish momentum, despite being knocked back from $1.39 yesterday.

Having been on a steady climb since May, we should expect any weakness to find buyers, although, given how stretched the uptrend is, a sustained pullback seems likely. However, support around $1.3760 could help stem downside in the short term.

USD/CAD unmoved by rate hike

Yesterday’s dovish hike from the Bank of Canada (BoC) provoked a spurt of volatility, but overall USD/CAD is where it was a day ago.

Crucially, the spike higher failed to take out last week’s highs at $1.26, while the January low at $1.2354 has still to be tested. 

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