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, GBP/USD, NZD/USD

European currencies begin to look more bullish, at least for the short-term. Meanwhile, NZD/USD appears to be turning following an overnight rebound.

IG Analyst

Publication date : 2017-02-23T09:10:35+0000

US dollar and pound sterling notes

Source: Bloomberg

EUR/USD showing signs of a resurgence

EUR/USD has managed to break through the $1.0556 resistance level overnight, with the subsequent consolidation bringing a 76.4% retracement. A break and an hourly close above $1.0574 would provide greater confidence of a protracted move higher.

However, it should be remembered the price broke below the $1.0525 level yesterday, so the wider perspective points towards the rally being a retracement of the drop from $1.0680 level. With that in mind, short-term gains are perceived as something to short if we come into the $1.624 (70%) and $1.0636 (76.4%) levels.

EUR/USD price chart

EUR/USD price chart

EUR/USD price chart

GBP/USD triangle breakout in the offing?

GBP/USD has shown signs of a potential bullish breakout from the symmetrical triangle that has been dominating all week. Yesterday’s break through $1.2483 was the first higher high in three weeks, with price subsequently falling into the 76.4% retracement.

With the two doji candles being followed up by the current push higher, it looks like we could see the pair challenge yesterday’s high of $1.2508, a break above which would provide greater confidence of a bullish resolution to this recent triangle. A break below $1.2402 would negate this bullish view.

GBP/USD price chart

GBP/USD price chart

GBP/USd price chart

NZD/USD turning lower from Fibonacci resistance

IN_NZDUSD is selling off this morning, following a rally into the 76.4% retracement overnight. The breakout of the January uptrend has since provided us with lower highs and lows.

This rally falls into that same category, with a break through $0.7243 required to negate the bearish view. An oversold stochastic oscillator provides increased confidence of an extension of this current bearish turnaround.

NZD/USD price chart

NZD/USD price chart

NZD/USD price chart

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