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

US President Donald Trump’s anti-dollar comments have done little to dent the bullish dollar theme, with EUR/USD and GBP/USD expected to fall, while USD/CAD looks set to gain further.  

EUR/USD turning lower after 61.8% retracement

EUR/USD continues to look bearish, with the pair turning lower from a retracement into the 200-simple moving average (SMA) and 61.8% Fibonacci level.

The break below $1.1613 earlier in the week points towards a likely further deterioration in the pair, with a fall back towards the $1.1575 low seeming likely. This bearish view remains unless the price breaks above $1.1744.

GBP/USD expected to continue recent downtrend

GBP/USD has also rebounded following US President Donald Trump’s comments on the Federal Reserve (Fed) and the appreciation in the dollar yesterday.

However, this is likely to be a short-term phenomenon, with the pair turning lower from the 61.8% Fibonacci level this morning. Interestingly, the initial rebound saw the June low of $1.3049 respected. This points towards a continuation of the downtrend, with a bearish outlook in play unless we break above the $1.3083 swing high.

USD/CAD rebounds to continued recent uptrend

USD/CAD comes into focus today, with a host of Canadian economic data due out this afternoon. Trump’s comments seem to have had little effect upon this pair, with a break higher yesterday sustained.

There is a good chance we will see further upside to come, yet should today’s data points turn USD/CAD lower, it could give us a good buying opportunity. A bullish outlook is in play until we break below the latest swing low of $1.3159.

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