EUR/USD, GBP/USD and USD/CAD breaking higher after recent declines
EUR/USD, GBP/USD and USD/CAD all break higher ahead of BoC and Fed rate decisions.
EUR/USD reverses higher after period of downside
EUR/USD has broken out of its recent bearish phase, with the retracement seemingly over.
The break through $1.1106 brought about the first signal that this trend could be over, and we have since seen price fall back into that level to treat it as new-found support. With that overnight retracement proving relatively shallow, a break through $1.1118 provides us with a new buying opportunity, with stops below the $1.1106 support level.
GBP/USD starts to build new bulling trend once again
GBP/USD has also taken a turn for the better, with the pair breaking higher after the UK election was finally approved for 12 December. This provides some clarity and expectation of a resolution to the ongoing deadlock in UK politics.
For this pair, the break through $1.2876 provided the initial shift in mentality, with the subsequent pullback deemed a retracement to buy into. With the price on the rise, it is likely we will see a break through $1.2905 today, as GBP/USD continues its bullish reversal. A break below $1.2806 would be required to negate this bullish outlook.
USD/CAD breaks higher from wedge formation
USD/CAD has been on the slide over the course of October, with the price falling back into a crucial zone of support between $1.3069 and $1.3016. We are also trading around a long-term ascending trendline dating back to 2012.
With the price breaking higher from a wedge formation around this zone of support, there is a good chance that we will build bullish momentum from here. As such, while we could see further downside for the short term, watch out for another leg higher before long. This pair is particularly notable today given the rate decisions from both the Bank of Canada (BoC) and Federal Reserve (Fed). As such, while we do not know how things are going to play out, a bullish outlook would hold much more value if we still see this pair remain above $1.3042 by the end of the day.
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