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

There are signs that EUR/USD may have bottomed, while USD/CAD comes under pressure thanks to a rally in oil prices.

Euro and dollar notes
Source: Bloomberg

GBP/USD recovers, but can’t overcome 50-day SMA

A sharp rally yesterday saw IN_GBPUSD recover much lost ground, but the price is still stuck below the 50-day simple moving average (SMA) – $1.2553.

It has failed to push on beyond $1.25, so unless this occurs we could start to see a new drift lower. A break above $1.26 would suggest a move back to key resistance at $1.2865.

EUR/USD to test $1.07

From the looks of price action so far this week, the slump in EUR/USD may have come to an end.

The price has recovered, moving above $1.06, and further gains towards $1.07 will reinforce the impression buyers are in control.

A failure to push higher today would see support at $1.0525 tested. 

USD/CAD on the cusp of more declines

A sharp drop yesterday indicates that we are poised to see more declines, perhaps towards the 50-day SMA at C$1.3284.

However, with the price oversold intraday a short bounce may be in the offing. Nonetheless, it will take a move back above C$1.35 to indicate the dip has run its course. 

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