FX levels to watch: EUR/USD, GBP/USD and NZD/USD
EUR/USD, GBP/USD, and NZD/USD all look at risk of further downside, with key support levels coming into play.
EUR/USD rallies into deeper retracement
EUR/USD managed to stage another leg higher yesterday, with the pair rising through the 76.4% Fibonacci resistance level.
The downtrend seen over the course of recent months is reliant upon the creation of lower highs. With that in mind, we would need to see a rise through the $1.1264 swing high to bring about a wider bullish picture. Until then, the pair is likely to turn lower from this consolidation, with that 76.4% Fibonacci level seemingly providing resistance at present.
GBP/USD expected to slide after bearish break
GBP/USD dropped below the key $1.2989 support level yesterday, bringing about greater confidence that the bullish phase of last week is over.
With the price turning lower once again, it looks likely we will see the pair lose ground once more from here. However, should we see a rise, it would take a push through $1.308 to signal that it is anything but a short-term retracement.
NZD/USD starts turning higher
NZD/USD is turning higher following a break through the key $0.6605 swing high this morning.
That rise means that the subsequent pullback is seen as a retracement, with the price rising off the back of a move into the 76.4% Fibonacci level. As such, further upside looks likely from here, with a break below $0.6582 required to negate this short-term bullish picture.
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