USD vs EUR, AUD, CAD, GBP: strategic softening

USD vs EUR, AUD, CAD, GBP: strategic softening

2020-12-03 • Updated


The dollar eventually softened enough to give way to the Euro: the currency pair broke through the key resistance of 1.20 recently and climbed above 1.21. Tactically, EUR/USD is now in an upswing that started in February. If that upswing makes its way through 1.22 up to 1.24 and above, it will be an alarm bell that the 12-year-long downtrend of this currency pair may see its end soon. While that’s a possibility, keep in mind the potential for a downward correction as it frequently happens after strong advances such as the one we are witnessing.



The Australian dollar is on the verge of making a multiyear breakthrough as well. The downtrend that’s been there for the last decade is being challenged right now, with AUD/USD coming to the heights of 0.75. If the currency pair manages to march to 0.81 and secure its position above that level, the ten-year-long downward trajectory may see a change to the upward-looking curve. While that’s one of the potential long-term scenarios, don’t forget to factor in the likelihood of a bounce downwards: the resistance of 0.75 may well send AUD/USD back to the local lows at 0.70. Fundamentally, it depends on the USD more as the domestic economic environment in Australia is pretty tense.



The Canadian dollar has another tactical “objective” as compared to the Australian dollar and the euro. With USD/CAD, we have seen sideways movement contained in the five-year-long channel between 1.41 and 1.23. Currently, the currency pair is drifting to the downside of that channel, with 1.29 and 1.28 as the nearest downward checkpoints. Once and if those are crossed, 1.23 will be aimed at. If this support is crossed too, it may be an introduction to a shift to a downward trajectory after five years of moving mostly flat below 1.37. Now, while watching those key levels, beware of the reversal potential – as always. With USD/CAD, it would be a potential for a U-turn in the range of 1.28-1.29 to the upside.



Leaving the Brexit issues aside, let’s see what’s happening to the GBP/USD. Technically, it’s trading now at August highs – that’s the resistance of 1.34. That’s a key level that has been guarding the upside for the last 24 months, and the British pound made another step forward to break it. With the possibility of the bullish breakthrough and the march above that level grows the possibility of a reversal over here. Be prepared and very careful with it, especially now, with Brexit tensions. If the outcome of the divorce is not in favor of the GBP, there may be more pressure down on it – for this scenario, keep the support of 1.30 in sight.


                                                                                                         LOG IN


Latest news

USD: Powell Speaks on Cutting Interest Rates
USD: Powell Speaks on Cutting Interest Rates

Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...

WTT: Currency Pairs To Trade In April
WTT: Currency Pairs To Trade In April

Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera