FX levels to watch – EUR/USD, GBP/USD, NZD/USD

The dollar appears to be coming back to strength, with EUR/USD, GBP/USD and NZD/USD all turning lower. Could this be the beginning of another dollar rally?

Source: Bloomberg

Is EUR/USD on the turn?

Yesterday’s rally for EUR/USD failed to follow through, with price pushing back below Wednesday’s low of $1.0640 this morning.

The key signal of a reversal would be a break back below $1.0620. The clue that this uptrend is going to persist would be a break through $1.0710. 

GBP/USD starting to weaken once more

IN_GBPUSD looks like turning lower from the 61.8% retracement this morning, which seeks to follow up on Tuesday’s break below the $1.2412 mark.

Unless we see a break above $1.2706, this looks like we could see another move lower in the near-term. A break through $1.2706 is needed for a bullish outlook to reemerge.

NZD/USD triangle points to further losses

This week has seen IN_NZDUSD turn a corner, with the break back below $0.7222 pointing towards a bearish reversal. The current symmetrical triangle pattern is likely to break lower given the trend coming into it.

However, for greater confidence, an hourly close below $0.7172 would provide a strong bearish signal for the pair.

The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.

Find articles by analysts