FX levels to watch – EUR/USD, EUR/GBP, NZD/USD

EUR/USD looks set for further gains, despite the weakness seen in EUR/GBP. Meanwhile, NZD/USD is expected to continue its recent downtrend.

Source: Bloomberg

EUR/USD looks set for push higher

EUR/USD managed to break higher overnight, following a deep retracement which ran past the 76.4% level. However, we have since seen a break back through the first swing high at $1.1905, pointing towards the beginning of the expected resurgence.

With that in mind, it would take a break back below the $1.1824 level to negate the current bullish outlook, where the current weakness looks like a retracement before the pair moves higher once more. As such, it makes sense to look out for the 61.8% ($1.1861) and 76.4% ($1.1846) as potential areas of value to get long. 

EUR/GBP hesitates above support after trendline break

EUR/GBP has managed to break through a month long ascending trendline overnight, providing the potential for a bearish shift for the pair. The key here is whether we will see a break through the £0.9190 support level. Should that occur, we would be looking at a good chance of a shift in tone for the coming period.

As such, we have a very clearly defined level of support that will set the tone for the day, with bullish views above and bearish below.

NZD/USD continues to trend lower

NZD/USD has been one of the most consistent downtrends of all the major markets against the dollar, with the break below $0.7202 completing a major head and shoulders formation on the daily timeframe. We continue to see the follow through of that move, with the pair moving lower again this morning after a shallow retracement overnight.

There is a chance we could see a deeper retracement of the wider move from $0.7299, at which point the Fibonacci retracements come in as potential areas to look for shorts. However, an hourly close below $0.7132 would point towards a continuation of the recent downtrend. 

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