Dollar on Back Foot as Economic Numbers Weaken

The US dollar has been on its back foot against several major currencies this week. In particular, the USD/CAD pair has fallen as it enters a 'golden zone' between the 50% and 61.8% Fibonacci retracement levels.

This market crossroads is largely due to weaker-than-expected economic numbers from the US, which have contributed to the Canadian dollar's rise.

The EUR/USD pair initially fell but then turned around, attempting to break above the 1.16 level. If successful, this could pave the way for a move towards the significant resistance barrier at 1.1850.

The British pound is showing signs of breaking out to the upside, with the 1.36 level providing some resistance. However, whether it can overcome this hurdle remains to be seen.