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 weaken on risk-off move

EUR/USD, GBP/USD and NZD/USD weaken as dollar gains from a wider risk-off market sentiment.

​EUR/USD declines into key support

EUR/USD has weakened into the key $1.1259 swing low overnight, with the recent intraday rally coming into question. That level is going to be key in determining whether we are going to end the week on a positive note or continue to lose ground.

A drop below this support level would point towards a more bearish short-term trajectory coming into play. However, flatlining lows are also permissible within an uptrend, and thus there is a chance we reverse higher from here to continue the recent uptrend.

GBP/USD pulls back within recent uptrend

GBP/USD has been experiencing an impressive week, with the pair managing to break into the highest level in almost a month yesterday. However, risk-off sentiment seen throughout markets today are driving dollar demand that is sending this pair lower.

With that in mind, there is a good chance we will see further downside if that wider market theme persists. Nevertheless, the pair remains within an uptrend as things stand, with the price currently respecting the 61.8% Fibonacci retracement level at $1.257. Ultimately, we need to see swing lows such as $1.2508 and $1.2438 to break for this uptrend to reverse into a more bearish picture. Until then, there is a chance we start to rise again before long to continue the current trend.

NZD/USD declines into trendline support

NZD/USD has similarly weakened overnight, with the pair declining into trendline support in early hours. That trendline is going to be key here, with a break below it providing the potential beginning of a more bearish move.

Ultimately, we would need to see the $0.6519 level broken to bring that bearish short-term picture. Until then, another move higher looks likely to continue this recent uptrend.

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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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