EUR/USD, GBP/USD and NZD/USD decline towards key support
EUR/USD, GBP/USD and NZD/USD pull back after recent ascent, with key support coming into play.
EUR/USD pulls back from key resistance
EUR/USD saw sharp downside on Friday, following on from the rally into the $1.1179 resistance level.
The subsequent sell-off managed to maintain the trend of higher lows, yet the rally seen yesterday does raise questions given the inability to break through Friday’s high of $1.12. As such, a break below $1.1112 would bring about a more bearish picture for the coming days. Therefore, it makes sense to await a break below $1.1112, or above $1.12 to signal where we go from here.
GBP/USD slumps after Boris deadline hits confidence
GBP/USD upside has been limited by UK Prime Minister Boris Johnson's decision to impose a limit on the time allowed for UK-EU trade talks. We have seen the pound on the slide as a result, with GBP/USD returning towards the pre-election low of $1.305.
With the price starting to turn higher there is a strong chance we will see the pair start to reverse upward from here. As such, watch for a potential rebound over the short term, with a break below $1.305 required to bring about a bearish continuation signal.
NZD/USD heading lower after GDT decline
NZD/USD has been on the slide after a disappointing global dairy trade (GDT) figure yesterday, with the pair heading into the 76.4% retracement level this morning.
The rally seen over the past month does remain intact, where we would need to see a break below $0.6522 to negate that trend. With that in mind, watch for how we respond to this Fibonacci support at $0.6549, with a break below $0.6522 needed to bring a bearish outlook.
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