Skip to content

We want to clarify that IG International does not have an official Line account at this time. We have not established any official presence on Line messaging platform. Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

EUR/USD, GBP/USD, and NZD/USD start to weaken after recent gains

EUR/USD, GBP/USD and NZD/USD lose ground after recent gains, but will this be the beginning of a period of downside?

Video poster image

EUR/USD rolling over after deep retracement

EUR/USD has been on the rise over the course of the week, with the pair regaining much of the ground lost over the prior two-weeks. However, with the price having pushed into the a confluence of the 200-simple moving average (SMA) and 76.4% Fibonacci retracement, there is a good chance we see the recent bearish trend come back into play here.

With that in mind, watch for a potential breakdown below this first swing low of $1.2113 to bring greater confidence of near-term weakness. To the upside, we would need to see a break through the $1.219 level to negate the recent bearish trend.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

GBP/USD pulls back after recent gains

GBP/USD has started to ease back after the latest push into multi-year highs, with the pair clearly trading within a bullish trend. That trend remain in play until we start breaking from this wider pattern of higher lows.

As such, the current pullback looks like a retracement phase and buying opportunity unless we see price break through $1.368. Even in that case, we ultimately would need to see $1.3566 broken to bring a wider trend reversal signal. Until then, further upside seems to be around the corner.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

NZD/USD turning lower from range resistance

NZD/USD has been trading within a consolidation range over the course of the past month, with the pair appearing to once again respect the upper boundary of that pattern yesterday. With the price turning back into the $0.7199 support level this morning, a break below that point could bring another leg down towards the lower thresholds of the range.

That being said, the recent creation of higher lows does point towards a potential move into Fibonacci support if we do see that breakdown. With that in mind, near-term sentiment will be guided by whether the pair breaks or rebounds from the $0.7199 support level.

NZD/USD chart Source: ProRealTime
NZD/USD chart Source: ProRealTime

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Find out more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.