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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.

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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.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

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.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

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.

USD/CAD chart Source: ProRealTime
USD/CAD chart Source: ProRealTime

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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