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

Dollar strength is driving the likes of EUR/USD, GBP/USD and NZD/USD lower. However, with uptrend in play, another leg higher could be coming for all three.

EUR/USD consolidating after recent gains

EUR/USD failed to really push on at the end of last week, with Friday’s rebound failing to gain enough traction to push the pair through the $1.1514 peak.That means we could be looking at a retracement, with the recent rally having moved into and reversed around the 76.4% Fibonacci level ($1.1503).

A break below $1.1434 would provide a more bearish outlook, with confirmation coming on a drop below $1.1406. Until then, there is a chance we could rebound from here.

EUR/USD chart

EUR/USD chart

GBP/USD continues to drift lower

GBP/USD has been drifting lower after a recent uptrend that took the pair into a three-month high.

The current move lower looks to take the form of a falling wedge, with a strong possibility that the wider bullish trend will come back into play once more. A break through the $1.3160 swing high would signal that bullish shift. Otherwise, watch to see if we can break below this trendline support, with the 200-day simple moving average (SMA) also providing support.

GBP/USD chart

GBP/USD chart

NZD/USD pullback likely to bring another leg higher

NZD/USD has been drifting lower since Friday’s high, with the pair moving into the potential ascending trendline support.

The trend over the short term points towards this sell-off being temporary, with another leg higher likely before long. As such, this sell-off looks like a buying opportunity, with a drop below $0.6805 required to negate the bullish outlook.

NZD/USD chart

NZD/USD chart

You might be interested in…

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.


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.