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

Comments from Trump send the dollar lower, reversing some of the strength evident in the past week. However, could this just provide a buying opportunity?

US dollar notes
Source: Bloomberg

EUR/USD wedge rebounds from key support

EUR/USD is holding up at the key $1.1715 support level this week, with the ability to break below that level likely to prove crucial to the fate of the pair. Interestingly, the $1.1715 level represents the peak of the two-year range that the price broke out of in late July.

With that in mind, watch out for how the pair responds to this crucial support level, alongside trendline support. We would need to see an hourly close above $1.1824 to point towards another leg higher for EUR/USD. 

GBP/USD rallies into 76.4% retracement

GBP/USD has rallied overnight as a result of dollar weakness, with the pair moving into a deep retracement. This rally into the 76.4% Fibonacci level ($1.3030) provides a good selling opportunity for a continuation of the weakness seen over the past week.

As long as the price remains above $1.3053, then further downside remains the likeliest next step for GBP/USD.

USD/CAD likely to break higher from channel

USD/CAD is turning lower from trendline resistance this morning again, with the pair taking a breather from the uptrend instigated last week.

That uptrend is expected to resume once more in time, yet there is a good chance we could see a short-term move lower if the price breaks below trendline support. Should that occur, the $1.2649-$1.2655 zone looks interesting for longs. A bullish outlook remains unless the price breaks below $1.2629.   

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