EUR/USD, GBP/USD and NZD/USD slide towards key support levels
EUR/USD, GBP/USD and NZD/USD come under pressure, as dollar strength drives them into key support levels.
EUR/USD threatens to negate two-month uptrend
EUR/USD has been declining sharply since Thursday’s peak, with the pair now within touching distance of the critical $1.1085 support level.
A break below that level would signify an end of the uptrend that has been in play since November. Instead it would point towards a continuation of the wider two-year downtrend. As such, watch for the reaction to this current $1.1085-$1.1066 support zone as a guide on where we go from here.
GBP/USD declines back into key support zone
GBP/USD has also been under pressure, with the pair falling below $1.2985 support to bring about a heightened chance of a breakdown.
We still have trendline and horizontal ($1.2954) support to contend with. Therefore, the outlook will be driven by the reaction to this area of support.
NZD/USD pullback risks break from recent bullish rise
NZD/USD managed to break out from its recent trend of lower highs by pushing through the $0.6653 resistance level on Thursday.
That points towards a likely reversal higher for the pair. However, as part of a wider dollar surge, we are now seeing this pair come under pressure as we move closer to the key $0.6584 level. A break below that level would ramp up the likeliness of further downside for the pair. With that in mind, we need to see whether the pair breaks $0.6584 or $0.6665 to bring a more confident outlook going forward.
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