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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 and NZD/USD

European currencies look set for near-term weakness, while NZD/USD continues to power upwards.

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EUR/USD turning lower from Fibonacci resistance

EUR/USD has managed to rally into the 76.4% retracement this morning, following on from a wider downturn from the 61.8% resistance at $1.1394.

With a bearish, engulfing pattern looking likely from this resistance level, coupled with a wider bearish trend over recent months, another bearish period looks likely for the near term.

EUR/USD chart

GBP/USD rally proving short-lived

GBP/USD has been moving sharply higher this morning, yet just like EUR/USD, we are seeing the 76.4% Fibonacci resistance level respected.

The trend over the past week has been one of consolidation, with a failure to break below the crucial $1.2661-$1.2696 support zone meaning we still await the next signal of where we go from here. A break below that zone would set us up with another bearish phase. Conversely, should we see a break through the $1.2850 mark, it would bring about a more bullish view for the near term.

GBP/USD chart

NZD/USD surges higher from triangle formation

NZD/USD has managed to continue its bullish trend, with an upside breakout from a symmetrical triangle formation providing another leg higher for the pair.

Further gains do look likely, with any retracement looking like a buying opportunity as long as we do not break below $0.6851.

NZD/USD chart

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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