Dollar weakening to bring EUR/USD, GBP/USD, and USD/CAD into key levels
EUR/USD, GBP/USD, and USD/CAD continue to be driven by dollar weakness, with the latest moves taking us into key support and resistance levels.
EUR/USD looks set to break key resistance
EUR/USD has been hesitating below the key $1.199 resistance level, with the pair seemingly gathering momentum for another upside move.
The lack of any significant pullback from this level does highlight the strong chance of a breakout here, which would bring about a higher high for the pair. As such, todays outlook will be determined by the ability or inability to break through $1.199 resistance.
GBP/USD rises into Fibonacci and trendline resistance
GBP/USD moved into a confluence of trendline and 76.4% Fibonacci resistance in early trade today, with the downtrend seen over the course of the past two-months coming back into question here.
Given that wider trend, there is a strong chance we will see the pair start to reverse lower from here. A break up through $1.386 brings a stronger chance of a rally up into the key $1.3919 resistance level, which would end that recent downtrend.
As such, the current $1.386 resistance level will provide a key threshold to watch as we gauge whether this recent period of weakness is going to continue or reverse.
USD/CAD turning lower within wider bearish trend
USD/CAD looks to be turning lower once again this morning, with a bearish continuation looking to take shape again over the coming days.
The long-term downtrend seen over the course of the past year brings about clear bearish bias until we see price reverse up through key swing highs. With that in mind, further downside looks likely from here, with a rise up through C$1.2559 required to start unwinding this bearish intraday trend. However, we would ultimately need to see C$1.2647 broken to signal a potential wider reversal coming into play.
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