FX levels to watch: EUR/USD and USD/CAD
EUR/USD is taking a breather as it approaches a key bullish breakout level. Meanwhile, USD/CAD looks set to continue its consistent uptrend.
EUR/USD looks set for bullish breakout
EUR/USD has been moving higher since the 61.8% retracement seen in the first half of last week. That comes off the back of a rally which took the pair above both the $1.1443 and $1.1473 swing highs. That move provided a clue that the subsequent selloff was likely to be a short-term phenomenon before we break higher from this recent period of consolidation.
With the pair having moved close to the $1.1486 peak from last week, a break above that level should provide us with a bullish breakout signal and potential period of more clear-cut upside. Until then, the weakness we are currently seeing looks like a bullish continuation pattern or retracement.
USD/CAD uptrend looks set to persist
USD/CAD has been gaining ground consistently throughout December, despite any fears over the US government shutdown. That uptrend has taken us through the top of a rising channel formation, with the price instead respecting the top ascending trendline as newfound support.
This is likely to persist, with further upside expected as long as we do not see a break below the recent swing lows of $1.3595 and $1.3566.
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