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

The dollar is coming under pressure as we head into Janet Yellen’s Jackson Hole appearance. Will this strength for EUR/USD, GBP/USD, and NZD/USD last?

EUR/USD notes
Source: Bloomberg

EUR/USD likely to resolve in move higher

EUR/USD is tracking lower this morning, following a failed attempt to break through the crucial $1.1824 level on Wednesday.

The levels to watch here are $1.1824 and $1.1740. An hourly close above $1.1824 would point towards a break higher, with $1.1847 and $1.1910 the next major resistance levels. Alternately, an hourly close below $1.1740 would signal a more bearish shift in short-term outlook. 

GBP/USD resurgence could be short-lived

GBP/USD managed to break higher from a short-term descending channel yesterday, with the price rallying to $1.2837.

However, we are already seeing that resurgence comes under pressure, with a break below $1.2790 required to bring a renewed bearish outlook for the pair. There is significant hesitation ahead of Yellen and Draghi’s appearance later. Thus watch for a break below $1.2790 or above $1.2837 for a guide to the next move.

NZD/USD consolidation could bring reprieve

NZD/USD has been gaining ground this morning, as the pair consolidates off the back of a sharp sell-off in the early part of the week.

Crucially, we seem to have created a higher low, which means that a break through $0.7223 could bring a greater chance that we are seeing a short-term bottom. Given that, we are currently trading around a major historical head and shoulders neckline of $0.7202, a break up above $0.7223 could bring a strong move back towards the $0.7264-$0.77282 region before the bearish outlook returns. However, for now we need to see how this pair will resolve around this crucial support zone.

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