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

Dollar strength continues to push down EUR/USD and GBP/USD, although short-term rebounds seem likely.

EUR/USD could see another selling opportunity

The sellers took control of EUR/USD earlier in the week when the price failed to break $1.2350 to the upside. Now we have seen it push back towards $1.2165, dropping below the $1.22 level.

If $1.2165 goes then we will see a test of $1.21 and the rising trendline from the November lows. A bounce will target $1.23 and then on to $1.25. Any failure to breach $1.2350 would likely constitute another selling opportunity.

GBP/USD sees opportunity for going short

Dollar strength has seen GBP/USD create a series of lower highs since the late January peak, with the rally to $1.4070 earlier in the week meeting heavy selling.

A rebound would carry the price back towards the $1.40 level and the downtrend line running from the January highs. This would provide another opportunity for short positions, so a breach above $1.4070 is needed to create a new higher high.

USD/CAD has potential for buyers

USD/CAD has traded in a strong rising trend throughout the month, with buyers entering to buy the dip earlier in the week.

The next high is C$1.2920, last seen in December. Any pullback that holds above C$1.26 would constitute a buying opportunity.

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