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

EUR/USD and GBP/USD attempt to regain ground following recent downside. Meanwhile, Friday’s deterioration in USD/CAD brings the price back into key support.

EUR/USD moves into Fibonacci support

EUR/USD has pulled back into the 76.4% retracement this morning, in what looks like another pullback within a month-long uptrend.

The inability to break through the $1.1961 high is a worry, which could point towards a wider retracement into the $1.1771 area (76.4%). However, until we break below $1.1809, there is a good chance we could see the pair push higher once more.

GBP/USD showing signs of weakness

GBP/USD has fleetingly broken below the $1.3432 support level this morning, following on from the weakness we saw towards the end of last week.

This points towards a possible wider pullback. A convincing hourly close below that $1.3432 level would provide a clue that the move lower is going to happen sooner rather than later. Alternatively, we could see the price retrace the recent pullback.

USD/CAD falls into key support zone

USD/CAD has tumbled back into a key support zone following Friday’s sharp deterioration, with trendline support, and the $1.2666 level providing a key zone to watch.

The ability to break below that level will be key to determining the outlook for the day. An hourly close below $1.2666 would point towards the possibility of another strong move lower.

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