Dollar weakness likely to drive EUR/USD and GBP/USD strength, while USD/CAD heads lower

​EUR/USD declines towards Fibonacci support

EUR/USD has been on the back foot over the course of the week, with the break back below $1.185 on Wednesday giving way to further downside for the pair.

However, with the recent rally through $1.1881 bringing a higher high into play, there is a good chance that this period of downside represents a retracement before we head higher once again.

With that in mind, bullish positions are favoured unless the price drops back below $1.1754 support.

GBP/USD continued to build base after 76.4% pullback

GBP/USD has been taking its time building bullish momentum off the back of another retracement, with the pair respecting the 76.4% Fibonacci level over the course of the week.

The recent trend of higher lows does point towards a likely break higher before long. As such, a bullish view holds unless the price breaks below $1.3843 support.

USD/CAD rolling over from trendline and Fibonacci resistance

USD/CAD has seen a relatively volatile week, with the index reversing lower after a period of strength towards the beginning of the week.

That rise took us back into the confluence of trendline and Fibonacci resistance, with the recent bearish momentum coming back into play.

​The key hurdle to overcome for bears comes in the form of the C$1.2425 low, with a break below that level required to bring a wider bearish picture into play. To the upside, a break through C$1.2605 would bring about a fresh bullish signal for the pair.