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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

A pivotal time for EUR/USD, GBP/USD, and NZD/USD provides us with a crucial day of trading to set up the week.

Euros and dollars
Source: Bloomberg

EUR/USD pullback unlikely to last

EUR/USD has drifted lower this morning, with the pair moving into trendline and horizontal support, at $1.1790. With the price having broken higher from a bullish wedge pattern yesterday, it looks likely that we will see the pair turn higher once more before long.

As such, a bullish view is in play unless we see a break back below $1.1731.

GBP/USD turns lower from trendline resistance

GBP/USD worked out perfectly yesterday, as the pair rallied back into trendline and range resistance at $1.2909. With the price turning lower once more, we are expecting to see a move back into the $1.2841 support level. We continue to trade in a short-term downtrend, above a crucial support level ($1.2811).

While the typical breakout would be expected to come to the downside, we would need to break and hold below $1.2811 to bring about a confidence bearish outlook from here. Until then, it makes sense to continue to play the $1.2841-$1.2909 range.

NZD/USD respects triangle resistance

NZD/USD is selling off from the $0.7335 resistance level once more this morning, with the price moving back into the notable $0.7305 swing low. A break below there could be a warning sign of impending weakness, which would be a move in favour of the prevailing trend seen over the past three weeks.

Ultimately, it makes more sense to await a break and hourly close either above $0.7335, or below $0.7376 to guide our outlook for the pair.

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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