CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

​EUR/USD, GBP/USD and NZD/USD diverge as NZD shows strength

EUR/USD, GBP/USD and NZD/USD diverge as sterling weakness plays out despite NZD strength.

​EUR/USD consolidates at key support level

EUR/USD has dropped back into the $1.1112 support level this week, with the price now consolidating around that swing low. The fact that we have seen the price fall into that level points towards a likely move lower over the near term.

However, it will depend on whether we see a break below here or not. As such, watch for whether or not we break below $1.1112 to guide today's trade.

GBP/USD drops below key support level

GBP/USD has seen sharp declines throughout the week, with the pair finally breaking below the crucial $1.305 support level. That signals that there is a good chance we will see further downside to come.

For now, the price is held up around the 200 simple moving average (SMA) on the four-hour chart and $1.2985 support level. However, there is a strong chance we will see further downside, with a break through $1.3133 needed to bring about a more positive outlook once more.

NZD/USD back into key resistance

NZD/USD has managed to rally back into the $0.6614 resistance level following a short-term pullback earlier in the week. The wider bullish trend remains intact and thus further gains seem likely.

Watch for a break through $0.6614 to bring about expectations of a rally into $0.6636. Alternatively, a break back below $0.6554 would be required to bring a more bearish outlook.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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