Dollar weakness drives EUR/USD and GBP/USD gains, while USD/CAD breaks lower
FOMC-fuelled dollar weakness sparks EUR/USD and GBP/USD gains, while USD/CAD breaks through Fibonacci support.
EUR/USD drives higher after recent upside break
EUR/USD has built on the rise through $1.1831, with the pair driving into a fresh two-week high. The gradual nature of the recent downtrend did point to such a move likely coming into play before long, and we are now looking for clues as to where this rise will push into.
The wider Fibonacci retracement from $1.1975 is of particular interest, with $1.189 and $1.1922 representing the two notable deep Fib levels worth considering from the bears to come back into play once again. Until then, further short-term upside looks likely from here.
GBP/USD breaks key resistance to end recent bearish threat
GBP/USD has managed to push up through the $1.391 resistance level overnight, with the pair negating the downtrend in play over the course of June and July.
With a more bullish outlook now confirmed, it makes sense to simply follow the intraday trend of higher lows, with a bullish outlook in play until the price breaks back below $1.3843.
USD/CAD breaks Fibonacci support after recent consolidation
USD/CAD has finally broken from its consolidation phase, with the pair falling into a two-week low this morning.
Crucially, that brings us back below the 76.4% Fibonacci support level as we close in on the key swing low of $1.2425. A break back below that level would confirm the end of the uptrend that has dominated the past two months. As such, watch out for further downside from here, with a break below $1.2425 in particular providing greater confidence in that bearish outlook.
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