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

A surge in the dollar is driving EUR/USD and GBP/USD lower, yet with the CAD strengthening, we are seeing USD/CAD tumble in a move that could provide a buying opportunity.

EUR/USD continues to decline

EUR/USD has continued its descent, with the pair starting to slow down in that move.

There is a good chance that we will soon see some form of rebound, yet this would likely provide us with another shorting opportunity. A bearish outlook remains in play unless we see a break through the $1.1428 swing high.

GBP/USD downtrend remains in play

GBP/USD is expected to continue its downtrend, with the ongoing creation of lower highs and lower lows pointing towards further losses to come.

This morning has seen a temporary bounce for the pair, but this is unlikely to last, with a rally above $1.2828 required to negate this bearish outlook.

USD/CAD falling from Fibonacci resistance

USD/CAD has been drifting lower from the 61.8% resistance this week, with the pair seemingly in retracement mode once more. This period of weakness is unlikely to last, with the 76.4% retracement ($1.304) looking like an interesting area to look for longs.

Until then, there is a chance we could see further short-term downside. A break below $1.30 would signal that the 61.8% retracement seen last week is the total sum of the upside. Until that happens, there is a good possibility that we will soon see the pair turn upwards once more.

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