EUR/USD, GBP/USD, and NZD/USD retracements could bring buying opportunity
EUR/USD, GBP/USD, and NZD/USD weaken in early trade, yet that retracement could bring another buying opportunity.
EUR/USD seemingly in retracement mode within recent uptrend
EUR/USD has been on the rise over the course of April, with the pair moving into a two-month high yesterday. That latest push higher took us beyond the 76.4% Fibonacci resistance level, raising the likeliness that we are on track for a push up towards the $1.2243 resistance level.
Notably, we are seeing a bearish divergence on the stochastic, but it makes sense to await a break below $1.2057 level to bring about a reversal signal. Until then, this current move lower looks like another potential buying opportunity. Watch out for trendline and Fibonacci support as potential areas for the bulls to come back into play.
GBP/USD rolling over on the way to resistance
GBP/USD remains stuck within the $1.4006-$1.367 zone, with the latest rally taking us back towards the top end of that range. However, this morning we are seeing the pair turn lower, which highlights the potential for a continuation of this consolidation phase. Ultimately we would need to see that $1.4006 level broken to bring a wider bullish trend in play.
To the downside, a break below $1.3861 would signal a potential pullback towards the $1.367 range low. Nonetheless, it is notable that the recent lows of $1.3823 highlight the potential for a bullish inverse head and shoulders formation for the pair. As such, Until then, this pullback could be another retracement as we head towards the $1.4006 resistance level.
NZD/USD pullback could bring buying opportunity
NZD/USD has started to ease back this morning, following a bullish breakout through $0.7265 on Wednesday night. That signals a potential bullish continuation for the pair, with a break below $0.7188 required to bring about a bearish signal.
Until then, this current move lower appears to be another retracement within an uptrend that has dominated the month of April. Look out for Fibonacci support at $0.7211 and $0.7226 as potential areas for the bulls to come back into play.
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