Dollar under pressure for EUR/USD, GBP/USD and USD/CAD
The US dollar looks likely to remain under pressure for EUR/USD, GBP/USD, and USD/CAD
EUR/USD likely to push higher again
EUR/USD is turning higher after the latest short-term pullback, with the pair coming off the back of a rise into the 1.1179 resistance level.
The tentative breakthrough that level provided us with a new three-month high last week, signaling a potential continuation of that bullish move before long. With that in mind, further upside seems likely from here, with a bullish outlook in play unless we see a break below 1.1103.
GBP/USD begins to strengthen after pullback
GBP/USD saw sharp gains off the back of the election exit poll on Thursday night, with that move being retraced throughout the course of the election itself.
It is highly unlikely that we see a move back below the 1.305 lows seen prior to the election, and thus any downside is likely to be a short-term phenomenon before we move higher once again. As such, a bullish outlook remains in play unless that 1.305 level is broken.
USD/CAD breaking down to continue recent reversal
USD/CAD has been deteriorating over the course of December, with the index looking likely to maintain the long-term bearish trend once more.
The creation of lower highs and lows remains in play thanks to a break below 1.315 this morning. That signals a likely drive lower from here, with the 1.3068-1.3042 zone looking a strong possibility before too long. Watch out for the ascending trendline too as the pair continues to trade within a wider triangle formation.
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