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

Convergence across European currencies sees the euro continue to gain while the pound plummets. Meanwhile, could we be set for further gains in NZD/USD after a key trendline break?

New Zealand dollar note
Source: Bloomberg

EUR/USD pushing higher following pullback

EUR/USD has managed to maintain price action above the $1.0686 level, with yesterday’s pullback coming into the $1.0700 mark before turning higher once more. It looks like we are seeing the pair moving into another leg higher and as such, a bullish outlook remains in place unless we see an hourly close below $1.0686. Watch out for $1.0800 as the next major resistance point to break through.

GBP/USD turns lower following retracement

GBP/USD is selling off sharply following on from a deep 76.4% retracement overnight. It is clear the pair has moved back into a bearish mode, which coincides with the wider, longer-term trend.

With that in mind, further downside seems likely, where the $1.2570 support level comes into view as a near-term target. As long as price does not break through $1.2683, a bearish outlook is in place.

NZD/USD rally looks set to continue

NZD/USD saw a sharp rally yesterday, with price managing to break through a trendline which dates back to January. The fact that we have seen price pull back and respect this line as new found support provides a bullish signal which could yet drive further gains. This rally forms a wider retracement of a downturn from $0.7403, with the recent rally through the 50% pullback meaning we are now looking towards the 61.8% ($0.7238) and 76.4% ($0.7301) levels for the bearish view to come back into play.

The 76.4% pullback has popped up a number of times over recent months and another rally into that level could be interesting. In either case, a short-term bullish outlook is in play, with the ability to remain above $0.7193 key to further gains.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.