FX levels to watch: EUR/USD, GBP/USD and NZD/USD

Mixed moves for the dollar have seen NZD/USD gain ground, while EUR/USD and GBP/USD drift lower. However, there is a good chance we will see all three head lower from here.

EUR/USD wedge break points towards potential upside

EUR/USD has managed to rally through trendline resistance, completing a bullish breakout from the falling wedge formation in play over the past week. This points towards a potential bullish phase coming into play this week.

However, it makes sense to watch out for a rally through $1.1432 to confirm this bullish view. Until then, the downtrend remains intact, with the price continuing to create lower highs and lower lows after Friday’s rally into the 76.4% retracement.

GBP/USD turns lower despite stochastic breakout

GBP/USD is turning lower yet again, following on from a rebound off the $1.2785 support level on Friday.

That rebound from the September low coincided with the stochastic breaking higher from a wedge/triangle formation, thus pointing towards a potential period of upside to come. However, until we see the price form a higher high (above $1.2843), this downtrend remains in play.

NZD/USD turning lower after rally into 61.8% resistance

NZD/USD managed to rally sharply on Friday, bringing the pair into the wider retracement of the sell-off from $0.6607.

Watch for a potential bearish reversal from here, with a rally above $0.6607 required to negate the wider bearish outlook for the pair.

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