EUR/USD, GBP/USD, and NZD/USD rally into key resistance
EUR/USD, GBP/USD, and NZD/USD have pushed towards key resistance, but will the EUR/USD break signal a similar move elsewhere?
EUR/USD easing back after resistance break
EUR/USD managed to break through the February peak of $1.2243 yesterday, with the pair pushing into a four-month high in the process. While the pair is easing back this morning, we are looking at a potential retracement rather than anything too worrying for bulls.
As such, this short-term pullback could bring about a fresh buying opportunity, with the $1.2186-$1.2201 zone providing an interesting area for bullish positions if the price falls further. Irrespective of whether we see a deep enough pullback or not, the early weakness we are seeing today is likely to be fleeting with bullish positions favoured unless price breaks below $1.216.
GBP/USD falls back towards consolidation support
GBP/USD has been in consolidation mode over the course of the past week, with higher lows created alongside lower highs.
Coming off the back of a rise towards the crucial $1.4241 resistance level, a break below the $1.4111 low would point towards a potential bearish phase coming into play. However, until that break occurs, there is a good chance we will see the pair start to move higher from trendline support today.
NZD/USD spikes after RBNZ meeting
NZD/USD has outperformed overnight, with the latest Reserve Bank of New Zealand (RBNZ) meeting helping to lift the pair into a three-month high.
Importantly, that has taken us into the early-January peak of $0.7315, with the price currently holding below that point. With that in mind, it is worthwhile noting that the directional bias for the day ahead will be determined by the reaction to this $0.7315 resistance level.
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