FX levels to watch: EUR/USD, GBP/USD and NZD/USD
The dollar is expected to regain ground as we head into the weekend, with EUR/USD, GBP/USD and NZD/USD all expected to turn lower in the near future.
EUR/USD expected to start fading before long
EUR/USD has managed to overcome the 61.8% Fibonacci retracement level, as it extends the rebound from trendline support last week.
A break through the $1.1419 peak would signal a wider bullish picture coming into play. Until then it looks likely we will see the pair turn lower once again, with the breakdown in the stochastic highlighting a bearish divergence developing. A break below the $1.1294 swing low would provide confirmation of that bearish picture coming into play. Otherwise, shorts look attractive closer towards the 76.4% retracement level.
GBP/USD threatening to retrace lower once more
GBP/USD has experienced a volatile week, with the pair breaking into a new higher high on Wednesday night, only to start turning lower.
We look likely to post another retracement phase from here, with a break below $1.3207 pointing towards a bearish short-term move as we retrace the rally from $1.3004. Look towards $1.3148 as the first notable level of support should that breakdown occur.
NZD/USD turning lower after another upward retracement
NZD/USD has been gaining ground overnight, following on from another leg lower on Thursday morning. The wider trend is a bearish one for this pair, with lower highs in place since the February peak.
Given the short-term and longer-term pictures of lower highs, it looks likely we will see the pair sell off from here, with a break through $0.6865 required to negate that bearish outlook.
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