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

EUR/USD is showing signs of strength as we await direction for the pair. However, all eyes are on USD/CAD ahead of OPEC and Canadian GDP announcements.

Euro notes
Source: Bloomberg

EUR/USD rebounds from key support

Yesterday saw EUR/USD fall back to the $1.0563 support level, only to rally higher once more. This remains a period of uncertainty, where an hourly close above $1.0686 would provide a bullish signal, whereas a break below $1.0563 would point towards further losses for the pair.

Given the recent downfall of EUR/USD, further losses are certainly a strong possibility. However, some form of retracement could be sizeable given the deterioration in recent weeks.

As such, it makes sense to await a break through resistance or support to provide greater clarity of the next move.

USD/CAD approaching key support level

USD/CAD is turning lower this morning, as crude prices spike off the back of positive noises out of Vienna. With oil expected to be highly volatile today, the pair will come into focus heavily as a result.

Given the current descending triangle formation in play, a break and closed candle below the C$1.3378-C$1.3398 zone could spark a significant move lower for the pair.

However, until that happens there is a chance we could see yet another bounce for the pair.

NZD/USD rallies into key trendline resistance

NZD/USD has rallied sharply over the past week, with price moving into a key trendline resistance. This trendline has provided support on a number of occasions and as such, there is a good chance we could see the sellers come in.

We would need to see a break and hourly close below $0.7133 for such a bearish outlook to come into play. Alternately, an hourly close above $0.7174 would signal a bullish continuation for the pair.

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