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

The dollar is on the up again, with downtrends in EUR/USD and GBP/USD reasserting themselves. Meanwhile, USD/CAD has been the beneficiary of some dovish talk from the Bank of Canada. 

EUR/USD turns lower

The downtrend line from the February high looks to be coming into play for EUR/USD once again this morning.

A fresh turn lower seems to be underway, with $1.2270 being the first target, followed by $1.2165. A lower high having been created again means that we need a firm push back above $1.2450 to negate the bearish outlook.

GBP/USD hits resistance

While GBP/USD has pushed above the downtrend line from the January high, and has also pushed above last week’s high, it has faltered at $1.40.

Further declines may see a retest of the breakout, around $1.3890, or a move back below would see $1.38 and then $1.37 tested. Above $1.40, the price targets $1.4070 and then $1.4145.

USD/CAD creates new higher low

Yesterday saw a classic example of fundamental news intervening to liven up a market, this time for USD/CAD.

The Bank of Canada (BoC) governor Stephen S. Poloz made a speech widely viewed as dovish, causing the US dollar to gain vis-à-vis its Canadian counterpart. While a new higher high in the uptrend has yet to be posted, a new higher low has been created. Crucially, the price has broken back above C$1.2916 again, which brings C$1.30 and higher into play. 

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