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

The dollar strength story seems to be back into play, with GBP/USD weakness and USD/CAD strength. However, EUR/USD seems to remain stubbornly resilient to the dollar’s resurgence.

EUR notes
Source: Bloomberg

EUR/USD moves towards crucial support level

EUR/USD is selling off into the $1.1715 support level once more this morning, with the price remaining within a falling wedge pattern. That support level is a crucial historical point of reference, and thus keep an eye out for a potential response at $1.1715.

Interestingly, we are seeing the stochastic fail to create lower lows, thus providing a bullish divergence as momentum fails to follow the price. This could be a clue that we are set to rebound from here.

However, for a bullish view to come into play, we would need to see an hourly close above $1.1824. Until then, watch out for whether the current downside can break below the crucial $1.1715 support level to continue the recent downtrend.

GBP/USD turns lower from 76.4% pullback

GBP/USD has continued its recent downtrend, with the pair breaking lower from a deep 76.4% retracement. The $1.2952 support level is the first obvious hurdle to get through, with an hourly close below pointing towards further losses.

Upon which, any rallies are there to be sold into, with the $1.3030 level subsequently representing the most recent swing high which must hold for the downtrend to remain. 

USD/CAD breaking higher following consolidation

USD/CAD has broken free from the descending channel evident earlier in the week, with a nice deep retracement to the 70%-76.4% retracement zone.

We are now back on trend, with the creation of higher highs and higher lows in play. For now, longs are preferred on retracements, with a move back below $1.2691 required to negate this bullish view.

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