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

Dollar strength is back on the cards, with USD/JPY and USD/CAD turning higher, as EUR/USD shows signs of potential weakness.

US dollar and Japanese yen notes
Source: Bloomberg

EUR/USD strength could prove short-lived

EUR/USD managed to break above the $1.0658 resistance level yesterday, providing a potential bullish move. However, with the swift break back below the $1.0583 mark, the pair takes on a bearish outlook once more.

Given the wider trend in play, further losses are preferred, with a break above $1.0686 required to negate this bearish view. 

USD/JPY turns higher once more

USD/JPY is strengthening, following a pullback to the crucial ¥111.45 support level yesterday. The pair has been on a remarkably consistent uptrend of late and we could see that trend come back into play once more.

Watch out for a potential break and hourly close above ¥112.80 as a bullish signal. Given the inability to hold below ¥111.45, a recovery from here does seem likely. As such, we are watching the reaction to ¥112.80 as a signal of the next move.

USD/CAD triangle remains in play

USD/CAD has bounced from the C$1.3398 descending triangle bottom once more this week, with price moving upwards into the C$1.3455 resistance level.

A break and hourly close above that level would point towards a move back into trendline resistance (currently C$1.3517). As such, watch out for the reaction to C$1.3455 as a key gauge of the next move.

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