FX levels to watch – EUR/USD, GBP/USD, NZD/USD

EUR/USD and GBP/USD strength looks likely to resume, yet NZD/USD is showing signs of potential weakness.

New Zealand dollar
Source: Bloomberg

EUR/USD rallies back towards key resistance

EUR/USD has had a strong week, with the pair pushing back towards trendline resistance once more. For now we are seeing a shallow sloped consolidation, which points towards another potential move higher out of this pattern.

A break through $1.1428 would point towards a move back into trendline resistance at $1.1445. Until that happens, watch the shorter term intraday charts for a potential sign of that next leg higher.

GBP/USD pullback unlikely to last

GBP/USD is moving lower this morning, following a bullish break through $1.2948 and $1.2959 resistance. This morning has seen a move back into the 50% retracement, but no matter whether we fall lower than that or not, a bullish view remains in place, and a move back towards the $1.3000 area is likely.

A trendline break and move back below $1.2924 would negate this view.

NZD/USD showing signs of potential weakness

NZD/USD is flatlining this week, coming off the back of a strong June. We have seen the gradual creation of lower highs and lower lows, pointing towards the potential for another move lower from this 50-day simple moving average (SMA).

Whether this is a market top or not is another matter, but for now we look like we have a good chance of another move to the downside for the pair. A break up through $0.7300 would point towards the recent uptrend coming back into play.

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All trading involves risk and losses can exceed deposits. Trading CFDs may not be suitable for everyone so please ensure that you fully understand the risks involved. All trading involves risk and losses can exceed deposits.