CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

FX levels to watch – EUR/USD, EUR/GBP, NZD/USD

EUR/USD looks set for further gains, despite the weakness seen in EUR/GBP. Meanwhile, NZD/USD is expected to continue its recent downtrend.

IG Analyst

Publication date : 2022-07-01T21:56:00+0100

Euros

Source: Bloomberg

EUR/USD looks set for push higher

EUR/USD managed to break higher overnight, following a deep retracement which ran past the 76.4% level. However, we have since seen a break back through the first swing high at $1.1905, pointing towards the beginning of the expected resurgence.

With that in mind, it would take a break back below the $1.1824 level to negate the current bullish outlook, where the current weakness looks like a retracement before the pair moves higher once more. As such, it makes sense to look out for the 61.8% ($1.1861) and 76.4% ($1.1846) as potential areas of value to get long.

EUR/USD chart

EUR/USD chart

EUR/USD chart

EUR/GBP hesitates above support after trendline break

EUR/GBP has managed to break through a month long ascending trendline overnight, providing the potential for a bearish shift for the pair. The key here is whether we will see a break through the £0.9190 support level. Should that occur, we would be looking at a good chance of a shift in tone for the coming period.

As such, we have a very clearly defined level of support that will set the tone for the day, with bullish views above and bearish below.

EUR/GBP chart

EUR/GBP chart

EUR/GBP chart

NZD/USD continues to trend lower

NZD/USD has been one of the most consistent downtrends of all the major markets against the dollar, with the break below $0.7202 completing a major head and shoulders formation on the daily timeframe. We continue to see the follow through of that move, with the pair moving lower again this morning after a shallow retracement overnight.

There is a chance we could see a deeper retracement of the wider move from $0.7299, at which point the Fibonacci retracements come in as potential areas to look for shorts. However, an hourly close below $0.7132 would point towards a continuation of the recent downtrend.

NZD/USD chart

NZD/USD chart

NZD/USD chart

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