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Dollar weakness could bring EUR/USD and GBP/USD gains, while USD/CAD looks lower

Dollar weakness could bring further strength for EUR/USD and GBP/USD, while USD/CAD looks set to head lower once again.

EUR/USD pullback unlikely to last

EUR/USD has been on the back foot for much of this week, with the pair seemingly retracing after a strong surge on Friday.

However, the ongoing recovery phase highlights a strong chance that we are looking at a retracement here, with a bullish view in play unless we break below the $1.199 mark.

GBP/USD takes breather after recent surge

GBP/USD experienced a rapid appreciation on Monday, with the pair building on the strength seen last week. We have seen the pair consolidate since that rise, but there is a good chance we are set to see another burst higher once we exit this current brief phase of consolidation.

With the price having moved well beyond the 76.4% Fibonacci resistance level, we have greater confidence that this is part of an all-out recovery that will ultimately drive us up through the $1.4241 resistance level. ​As such, the question from here is whether we are going to break higher or retrace from here. That should be answered by whether we rise through $1.4166 or break below $1.4104.

USD/CAD breaking lower after brief pause

USD/CAD has been on the slide of late, with the pair continuing its impressive long-term downtrend.

With price having formed a brief consolidation phase yesterday, we are looking to see another strong move lower from here. With that in mind, it makes sense to expect further downside should we break below the C$1.2079 low.

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