EUR/USD and GBP/USD pause, while USD/CAD seeks to reverse recent gains
Dollar strength eases off, with EUR/USD, and GBP/USD consolidating. Meanwhile, USD/CAD looks set for another bearish leg following recent gains.
EUR/USD stabilises after recent declines
EUR/USD has been hit hard of late, with the pair falling into a fresh five-month low yesterday. However, we are seeing the pair stabilize somewhat, as it attempts to regain ground.
Such a move looks unlikely to last, with a break through the $1.199 level ultimately required to bring a long-lasting reversal signal. Until then it is just a case of questioning how deep any retracement can go before we sell off once more. With that in mind, a break through $1.176 would be required to signal a more protracted move higher from here.
GBP/USD tightening within consolidation phase
GBP/USD has been consolidating after the recent pullback, with price forming a symmetrical triangle formation.
A break up through $1.3846 would bring greater confidence of a wider bullish move coming into play. Meanwhile, a decline through $1.3706 would bring about a more pessimistic outlook for the pair.
USD/CAD breakdown points towards further weakness
USD/CAD has been in a clear downtrend over the course of the past year, with the gains in crude helping to drive CAD outperformance. That wider downtrend looks like it could come back into play from here, with a breakdown from trendline and 76.4% Fibonacci resistance bringing expectations of another period of weakness here.
The move below $1.258 provides that bearish signal, highlighting the potential for this subsequent rise to be a retracement. With the price now falling from the 61.8% Fibonacci region, this looks like a prime moment for the pair to start another bearish phase.
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