European Currencies at Strategic Levels

The downward trend in the US currency continues to gain momentum. Thus, the euro/dollar pair yesterday tested important resistance at 1.1000, the pound/dollar pair strengthened to 1.2700, and the usd/cad pair fell below 1.3600. A lot of important groundwork is expected today in both the European and American sessions. Depending on the published data, these pairs may either go into correction or continue the main movements.

GBP/USD

The British currency is growing for the third week in a row. Yesterday, buyers of the pair managed to rise above 1.2700, but so far there has been no confident consolidation above this level. A reversal bar has formed at 1.2660 on the daily timeframe. If it begins to work out, a corrective price reduction to 1.2600-1.2500 is possible. A price move above yesterday's high at 1.2730 may contribute to a test of the psychological level at 1.3000.

Today at 10:00 GMT+3, we are waiting for data on the Nationwide House Price Index in the UK for November.

EUR/USD

As expected earlier, the single European currency managed to test important support at 1.1000. There is no consolidation above yet, but if the corrective pullback is not too deep, a repeated approach to 1.1020-1.1000 is possible. A reversal bar has formed at 1.0960 on the daily timeframe. If this signal is processed, the price may decline to the nearest alligator lines on the daily timeframe.

Today at 11:55 GMT+3, we are waiting for data on the unemployment rate in Germany for November. At 13:00 GMT+3, the eurozone consumer price index for the same period will be released. It is also worth paying attention to the speech of the head of the ECB, Christine Lagarde, scheduled for 16:30 GMT+3.

USD/CAD

Commodity currencies are in a consolidation phase this week. Thus, the US dollar/loonie pair has been trading for several days in a rather narrow range between 1.3660-1.3540. Perhaps a surge in volatility in the pair will occur in a few hours. Today there is a lot of incoming data from both Canada and the United States.

At 16:30 GMT+3, the basic price index of personal consumption expenditures in the United States for October will be published. Weekly data on the number of applications for unemployment benefits will also be released. In addition, at 16:30 GMT+3, Canada's GDP for the third quarter and average weekly income for September will be released.