EUR/USD, GBP/USD and NZD/USD remain within downtrend despite recent gains
EUR/USD, GBP/USD and NZD/USD show potential to move higher, but wider downtrend highlights potential for another move lower.
EUR/USD maintains its gradual decline for now
EUR/USD has been grinding lower over the course of the past month, with the declines becoming harder to come by as we move closer to the key March low of $1.1704. That lack of momentum does raise the risk of an upside move before long, yet we would need to see the price break out of this trend of lower highs for that to come into play.
With that in mind, the current rise could bring about another retracement after the 76.4% pullback on Thursday. A rise up through that $1.183 level would provide the first sign of a potential bullish reversal. Until then, short-term upside could bring another retracement into play before we continue to grind lower.
GBP/USD rallies into Fibonacci resistance
GBP/USD has been regaining ground since Tuesday’s low, with the price rising into the 61.8% Fibonacci level on Thursday.
The consolidation seen since then could simply set the scene for another move higher today, although we would need to see the price break through the $1.391 resistance level to bring an end to the bearish trend seen over June and July.
NZD/USD consolidates around Fibonacci and trendline resistance
NZD/USD has been consolidating around the 61.8% Fibonacci resistance level of $0.6982, with the price trading within a wider downtrend over the course of the last two months.
That informs us that we could see the price reverse lower to continue the trend of lower highs. As such, while we could see a short-term rise, we would need to see a rise up through the $0.7044 level to end the trend of lower highs and bring a wider bullish outlook into play.
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