EUR/USD, GBP/USD and USD/CAD begin to reverse
EUR/USD, GBP/USD and USD/CAD begin to show signs of an impending dollar-negative reversals.
EUR/USD rises through short-term resistance
EUR/USD managed to rally through the $1.1043 resistance level on Friday, negating the short-term bearish trend that has been in play. Whether the current move we are seeing is a retracement or beginning of a move through $1.1179 remains to be seen.
However, with that rise through near-term resistance taking place, there is a good chance that we see further upside from here. The next important hurdle comes at $1.1073, which was the double top neckline. A rise through there would point towards further upside as we regain the ground lost throughout the first two weeks of November.
GBP/USD pushing towards key resistance level
GBP/USD has been rising through the Fibonacci resistance levels over the past week, with the price now past the deepest level of 76.4%.
This means that we are now very close to breaking out of the short-term downtrend, with a rise through $1.2976 required to bring about a wider bullish outlook. As such, today will be dominated by the question of whether we will see that level broken to bring about a new bullish outlook for this pair.
USD/CAD rolling over after rally towards Fibonacci resistance
USD/CAD has been gaining ground over the past two weeks, with hte price rising back towards the 76.4% Fibonacci resistance level at $1.3276. While the price did not explicitly touch that level, we are now seeing bearish reversal signs in intraday price action.
The break below $1.3216 and $1.3212 negate the trend of higher lows, bringing a head and shoulders formation into play. Thus, further downside looks likely from here, with a break through $1.3275 Fibonacci resistance required to bring about a more positive outlook.
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