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.

FX levels to watch: EUR/USD, GBP/USD and NZD/USD

Dollar strength is driving the likes of EUR/USD, GBP/USD and NZD/USD lower. However, with uptrend in play, another leg higher could be coming for all three.

EUR/USD consolidating after recent gains

EUR/USD failed to really push on at the end of last week, with Friday’s rebound failing to gain enough traction to push the pair through the $1.1514 peak.That means we could be looking at a retracement, with the recent rally having moved into and reversed around the 76.4% Fibonacci level ($1.1503).

A break below $1.1434 would provide a more bearish outlook, with confirmation coming on a drop below $1.1406. Until then, there is a chance we could rebound from here.

GBP/USD continues to drift lower

GBP/USD has been drifting lower after a recent uptrend that took the pair into a three-month high.

The current move lower looks to take the form of a falling wedge, with a strong possibility that the wider bullish trend will come back into play once more. A break through the $1.3160 swing high would signal that bullish shift. Otherwise, watch to see if we can break below this trendline support, with the 200-day simple moving average (SMA) also providing support.

NZD/USD pullback likely to bring another leg higher

NZD/USD has been drifting lower since Friday’s high, with the pair moving into the potential ascending trendline support.

The trend over the short term points towards this sell-off being temporary, with another leg higher likely before long. As such, this sell-off looks like a buying opportunity, with a drop below $0.6805 required to negate the bullish outlook.

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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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