FX levels to watch: EUR/USD, EUR/GBP and NZD/USD

The dollar spikes seen on Wednesday have the potential to fade into the weekend. However, in the example of NZD/USD in particular, such a move could bring a good buying opportunity.

FX charts
Source: Bloomberg

EUR/USD rallies into SMA resistance

EUR/USD has been pushing sharply higher amid the dollar weakness instigated on Wednesday.

We have seen the pair move into the 200-day simple move average (SMA) and 76.4% resistance, with the wider creation of lower highs coming into play once more. A break through the $1.1472 level would bring about a wider bullish outlook. However, for now it makes sense to watch how we react to this resistance zone, with a retracement potentially coming into play with a break below the $1.1348 level.

EUR/GBP turning lower from trendline resistance

EUR/GBP has rallied sharply throughout the course of the past two trading days, with the price rising into trendline resistance. That descending trendline needs to hold for the wider creation of lower highs to remain in play.

With the week drawing to a close, there is a chance we will see some profit-taking come into play anyway, heightening the chances that the resistance zone between the descending trendline and the $0.8932 swing high will hold. A break above $0.8932 would bring about a bullish outlook, yet until then, there is a strong chance we will see the pair start to move lower to close out the week.

NZD/USD consolidation likely to bring further gains

The New Zealand dollar has been a big outperformer of late, helping drive the currency out of its 2018 downtrend against the US dollar before any other major currency. More recently, we have seen a bullish wedge breakout for NZD/USD, with the pair consolidating within a symmetrical triangle.

This is likely to be a continuation pattern, with a bullish breakout expected soon. A fall below $0.6844 would be required to negate this bullish outlook.

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