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

European currencies begin to look more bullish, at least for the short-term. Meanwhile, NZD/USD appears to be turning following an overnight rebound.

US dollar and pound sterling notes
Source: Bloomberg

EUR/USD showing signs of a resurgence

EUR/USD has managed to break through the $1.0556 resistance level overnight, with the subsequent consolidation bringing a 76.4% retracement. A break and an hourly close above $1.0574 would provide greater confidence of a protracted move higher.

However, it should be remembered the price broke below the $1.0525 level yesterday, so the wider perspective points towards the rally being a retracement of the drop from $1.0680 level. With that in mind, short-term gains are perceived as something to short if we come into the $1.624 (70%) and $1.0636 (76.4%) levels. 

GBP/USD triangle breakout in the offing?

GBP/USD has shown signs of a potential bullish breakout from the symmetrical triangle that has been dominating all week. Yesterday’s break through $1.2483 was the first higher high in three weeks, with price subsequently falling into the 76.4% retracement.

With the two doji candles being followed up by the current push higher, it looks like we could see the pair challenge yesterday’s high of $1.2508, a break above which would provide greater confidence of a bullish resolution to this recent triangle. A break below $1.2402 would negate this bullish view. 

NZD/USD turning lower from Fibonacci resistance

IN_NZDUSD is selling off this morning, following a rally into the 76.4% retracement overnight. The breakout of the January uptrend has since provided us with lower highs and lows.

This rally falls into that same category, with a break through $0.7243 required to negate the bearish view. An oversold stochastic oscillator provides increased confidence of an extension of this current bearish turnaround.

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. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.