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

A weakening of the dollar sees EUR/USD and GBP/USD regaining ground, while USD/CAD pulls back. However, with signs of reversals, will these moves prove fleeting?

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Bg eurusd
Source: Bloomberg

EUR/USD showing signs of a resurgence

EUR/USD managed to break into a new intraday high yesterday, with the subsequent pullback forming a bullish wedge. With the price now breaking through the top end of that wedge, the expectation is that we will see a resurgence for the pair. This conforms to the wider picture of higher lows on the daily four-hour charts.

A break below $1.0620 would negate that trend, yet for now it seems like we could be moving into a more bullish stage. Watch out for $1.0705 or $1.0714 as the key near-term resistance zones.

GBP/USD rebounding into Fibonacci resistance

GBP/USD is regaining ground following on from a break below the $1.2412 level. That break provides a clue that we could see further downside to come and, as such, it could be worth watching the 76.4% retracement ($1.2622) as a potential roadblock to further upside.

Ultimately, we would need a break back above $1.2706 to become bullish for the medium-term once more. 

USD/CAD wedge likely to break higher

USD/CAD is falling back following a break through C$1.3169 resistance on Tuesday. That provides us with a view that further upside is impending, especially given the wider perspective that this pair keeps bounding from the C$1.3000 region.

With a bullish falling wedge in play, another leg higher seems very likely, with a break back below C$1.3000 required to negate this bullish view. As such, for an intraday signal, a break back above C$1.3169 should suffice to spark another move to the upside.

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