EUR/USD, GBP/USD and USD/CAD expected to head higher despite consolidation
EUR/USD, GBP/USD and USD/CAD take a breather within the course of their recent recoveries. Are we set for another leg higher before long?
EUR/USD starts to reverse below resistance
EUR/USD is turning lower this morning, following a rally towards the crucial $1.1179 resistance level. If we break through that point, it would provide a wider bullish continuation signal.
However, with the price and momentum starting to roll over, we are at risk of not taking that level. Ultimately, we need to see a break below $1.1131 or above $1.1179 to dictate the outlook from here.
GBP/USD starts to weaken, yet recovery remains in play
GBP/USD has similarly seen some selling come into play, following on from a week dominated by buying. That short-term uptrend remains intact, and will only be negated should we see a break below $1.2925.
However, until that happens, the pair is likely to resolve with another move towards the upside. Keep an eye out for this morning’s appearance from Brexit Party leader Nigel Farage as a potential driver of sterling volatility.
USD/CAD expected to break higher once again
USD/CAD has been consolidating off the back of Wednesday’s sharp move higher. With the pair having declined into trendline support, we have seen USD/CAD gain ground over the course of the week.
The bullish wedge breakout has taken us into a bullish trend and that is expected to continue. Watch for a break through the $1.3173 level to signal the beginning of the next leg higher.
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