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 weakening as the dollar starts to strengthen

EUR/USD, GBP/USD, and NZD/USD drift lower, but will this dollar resurgence last?

EUR/USD rolls over into crucial support level

EUR/USD has been reversing some of its recent gains, with the pair weakening from around the 76.4% Fibonacci resistance level of $1.2116. Interestingly, we have now broken from an ascending channel, with the decline through $1.2056 also ending the trend of higher lows.

​The price has subsequently been building on that bearish signal, with the notable level of $1.199 currently being challenged. A move below this point brings a continuation of that current bearish trend that has been building. To the upside, a rise through $1.2076 would be required to bring a more positive outlook for the pair.

GBP/USD continues to consolidate as we await breakout

GBP/USD has been in consolidation mode over the course of the past two-months, with the pair showing few signs of breaking from that $1.367 to $1.4006 range anytime soon.

Within that range, we have recently seen the pair channeling lower, with the 61.8% Fibonacci level providing support on Friday. This highlights the potential inverse head and shoulders pattern coming into play throughout this two-month period.

With that in mind, the recent decline looks likely to be a precursor to us breaking higher. However, we would ultimately need to see a break through $1.367 (bearish) or $1.4006 (bullish) to bring a more confident breakout signal for the pair.

NZD/USD fails to sustain jobs bounce

NZD/USD saw a brief bout of gains off the back of an impressive jobs report overnight. However, that move failed to hold for long, with the pair starting to turn lower after confronting a descending trendline.

The recent bearish reversal seen for the pair highlights a potential for further weakness from here. Interestingly, this recent bounce provided the third touch of a now confirmed ascending trendline, which could become support as we move lower. Nonetheless, further downside looks likely unless we break through $0.7212, with the pair expected to drift lower as we move forward.


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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