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

The dollar appears to be moving back into a bullish phase, with EUR/USD and GBP/USD turning lower. Meanwhile, USD/CAD has been approaching the top end of its range, as we await either a breakout or reversal. 

EUR/USD rally could be shortlived

EUR/USD has been gaining ground this morning, following on from a week of losses that brought the price below the 76.4% retracement at $1.1771. With the wider creation of higher highs and higher lows still in place, we would need to see a break back below $1.1713 to truly negate that bullish view.

However, with the break below the 76.4% level, there is a good chance we could continue on the recent sell-off. As such, a break above $1.1815 would provide a bullish outlook, whereas a fall below $1.1713 would provide a bearish outlook.

GBP/USD continues its descent

GBP/USD is turning back into the $1.3355 support level this morning, as it looks to follow up on Friday’s losses.

Between the $1.3355, ascending trendline, and $1.3320, we have a host of support levels, which would bring a bearish view if broken.

USD/CAD trading near range top

USD/CAD has managed to regain ground over recent months, with the pair looking to shift into a more bullish phase. With that in mind, the wide range seen over the past month is expected to ultimately exit towards the upside.

Whether we get that bullish breakout above $1.2917 or not, this week remains to be seen. Until then there is a chance of a short-term bearish move to continue the range. A break below $1.2805 would provide a bearish signal for the shorter term. Until then, the ascent we are looking at needs to be put into the context of the wider range. 

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