FX snapshot: Dollar index, EUR/USD, EUR/GBP, USD/CAD

Dollar regains some ground, bringing a murkier picture for the greenback.


Dollar Index holds up below SMA
The Dollar Index is attempting to break out of the short-term symmetrical triangle formation that has been in play over the past 24-hours. The overall look of price action does look like the chart is rolling over and moving into a bearish mode.

However, should we see a move above the 96.05 mark, I would be in less of a bearish mindset. Nevertheless, we have clearly turned a corner, with lower lows and lower highs compared with the last week and thus I remain bearish for now. Resistance points in play are around the 96.05, 96.15, 96.32 and 96.52.

EUR/USD strength under question
Yesterday did see a bounce higher in EUR/USD, yet the inability to break back above $1.133 has brought us onto a less convincing upward trajectory. The creation of a lower high and lower low is a warning sign and the move below the 50-hour simple moving average points towards a more bearish outlook.

That said, I would want to see a move below $1.123 to gain confidence the selling is set to return for a move back to $1.116.

EUR/GBP looks set for strong selloff
EUR/GBP has broken below the £0.7358 support level, following a failure to create a new high above £0.7395. This means we now have a new low and lower high in play and as such I see this as a strong sell signal.

I am therefore bearish while price remains below £0.7382. An hourly close below £0.7356 would provide the bearish indicator I am looking for.

USD/CAD continuation pattern points to further upside
The USD/CAD chart has become a lot more convoluted given the resurgence of oil recently. However, the strong move higher in the latter part of the US session has since brought about a pullback which looks a lot like a flag. As such, I am bullish and expect the resolution of this retracement to be another move higher towards C$1.3324.

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