EUR/USD, GBP/USD and NZD/USD slide towards key support levels

EUR/USD, GBP/USD and NZD/USD come under pressure, as dollar strength drives them into key support levels.

EUR/USD threatens to negate two-month uptrend

EUR/USD has been declining sharply since Thursday’s peak, with the pair now within touching distance of the critical $1.1085 support level.

A break below that level would signify an end of the uptrend that has been in play since November. Instead it would point towards a continuation of the wider two-year downtrend. As such, watch for the reaction to this current $1.1085-$1.1066 support zone as a guide on where we go from here.

GBP/USD declines back into key support zone

GBP/USD has also been under pressure, with the pair falling below $1.2985 support to bring about a heightened chance of a breakdown.

We still have trendline and horizontal ($1.2954) support to contend with. Therefore, the outlook will be driven by the reaction to this area of support.

NZD/USD pullback risks break from recent bullish rise

NZD/USD managed to break out from its recent trend of lower highs by pushing through the $0.6653 resistance level on Thursday.

That points towards a likely reversal higher for the pair. However, as part of a wider dollar surge, we are now seeing this pair come under pressure as we move closer to the key $0.6584 level. A break below that level would ramp up the likeliness of further downside for the pair. With that in mind, we need to see whether the pair breaks $0.6584 or $0.6665 to bring a more confident outlook going forward.

IGA, may distribute information/research produced by its respective foreign affiliates 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.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. 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, and 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.

Please see important Research Disclaimer.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.