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

The dollar rally is coming under pressure, with EUR/USD and GBP/USD gaining ground. However, these moves could be fleeting, with recent downtrends still intact.

EUR/USD rebound presents selling opportunity

The EUR/USD is moving higher in early trade, with the pair hoping to make up for some of the losses seen earlier in the week. However, the four-hour chart below highlights the fact that this remains part of a wider bearish trend, where a move back towards trendline and 20-day simple moving average (SMA) resistance always seemed likely before long.

The one warning sign of a potential bullish reversal comes with the fact that this rebound is occurring around the $1.1554 swing low, which is an absolutely critical hurdle to overcome in forging a longer-term bearish story for EUR/USD. However, this trend remains in place unless we break above $1.1750. Until then, short-term upside looks like a selling opportunity.

GBP/USD rallies into trendline resistance

GBP/USD has also been gaining ground this morning, with the price rising above a near-term descending trendline. However, this takes us into the middle Bollinger band (20-day SMA), which often provided a good selling region.

This points towards a potential turn lower before long to continue the wider bearish trend. A break above $1.3341 would be required to negate this short-term bearish trend.

USD/CAD uptrend begins to slow

USD/CAD has been gaining ground over the past week, with oil prices turning lower to drag the Canadian dollar with it.

However, this rally could be slowing as personified by the break of an ascending trendline this morning. That break could signal a bearish shift, yet we would need to see a drop below $1.2972 to provide greater confidence of such a move. Until then, the uptrend remains in play.

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