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

Trump has thrown a spanner in the works for the dollar, with a more varied picture forming for different currency pairs. Crucially, it looks like we could soon see NZD/USD take a bearish turn, while EUR/USD and GBP/USD look as if they could begin to turn higher in the near future.

Pound and dollar
Source: Bloomberg

EUR/USD rallies into Fibonacci resistance

EUR/USD has gained ground overnight, with price rallying into the 76.4% retracement at $1.0712. From a wider perspective, we have got a clear uptrend, with the creation of higher highs and higher lows in place until we see a break below the $1.0579-$1.0589 support zone.

There is a good chance that this will persist, with a break above $1.0740 providing the bullish signal. However, until we see $1.0740 broken, there is also a good chance we will see another sell-off in the short-term, with trendline resistance up ahead. 

GBP/USD turning higher from Fibonacci support

GBP/USD has been selling off heavily over the past three trading days, with price falling into the 76.4% retracement at $1.2479. Given the uptrend in place over recent weeks, a break higher is expected for the pair and as such, this Fibonacci support level looks like an interesting area to get long.

That being said, we have not seen any bullish reversal signs yet and for greater confidence we would need to see an hourly close above $1.2601. A break below $1.2419 would be required to signal an end to this recent period of strength.

NZD/USD turning lower from major trendline

NZD/USD is turning lower from the 76.4% retracement this morning, as the pair once more seems to be struggling with the ability to break through a major trendline formed over the past five months.

Given this wider perspective further downside seems likely from here, with a break and four-hour close above $0.7313 required to negate the idea that we are topping off for the pair. 

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CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.