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

Further gains seem likely for EUR/USD and GBP/USD, yet how long this will last is the key question. Meanwhile, USD/CAD continues to show signs of a resurgence.

USD/CAD figures
Source: Bloomberg

EUR/USD turning lower from key resistance level

EUR/USD managed to push into the crucial $1.1250 level yesterday, with the pair turning lower this morning. Given the wider uptrend, this move is what we were looking for as a precursor to another push higher for the pair.

We are now seeing the pair fail to create a lower high, any move lower from here is perceived as a good buying opportunity rather than a reason to sell. As such, a bullish view is now in play unless we break below $1.1109.

GBP/USD rallies after failed attempt to break lower

Yesterday’s inability to break below $1.2775 and $1.2756 provided a subsequent bounce for GBP/USD, with the pair moving into the four-hour 100-day simple moving average (SMA). There is a good chance that this pair will see another leg higher, into the 61.8-76.4% Fibonacci cluster.

However, until we see a break through $1.3048 there is a good chance that this is simply a retracement and precursor to another leg lower. As such, shorts look interesting either at the $1.2950 mark or below $1.2756.

USD/CAD gains ground from key trendline

USD/CAD pushed higher yesterday, with the pair seeing some strength following Thursday’s bounce off trendline support.

With the price having fleetingly pushed through $1.3506, this provides us with a more bullish outlook. A push above $1.3540 would strengthen this view, while a break back below $1.3457 would negate it.

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