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

European currencies are in recovery mode after recent declines, yet GBP/USD looks set for further losses. Meanwhile, USD/CAD is approaching a critical resistance level.

EUR/USD turning higher from trendline support

EUR/USD has started strengthening this morning, after finding support on an ascending trendline overnight. This points towards a likely rally into trendline resistance, with the creation of higher highs and higher lows over the past fortnight looking likely to persist.

The break through the descending trendline on Friday points towards a possible wider resurgence coming into play here, with a break above $1.1500 providing the necessary signal that we are set for a wider bullish period.

GBP/USD in retracement mode after recent declines

GBP/USD has been in a steep decline in the early part of the week, with the price falling into a 19-month low.

This bearish trend is likely to persist despite the current rebound, with these gains instead looking likely to provide a good shorting opportunity. With that in mind, it makes sense to look for shorts as long as the price remains below $1.2812.

USD/CAD rallies towards previous highs

USD/CAD has been rebounding over the early part of the week, with the price moving closer to the previous peak of $1.3445.

The ability to break through that level will provide us with a lot of information, given the recent question marks that come with the break below $1.3182 earlier this month. As such, a break above $1.3445 would provide a continuation signal, yet until that break happens, there is a chance we could fall lower to raise doubts once again.

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