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

Short-term weakness for the likes of GBP/USD and EUR/USD could provide buying opportunities given recent uptrends, yet do these recent recoveries have legs?

Euro and dollar notes
Source: Bloomberg

EUR/USD falling back within 2017 uptrend

EUR/USD has been turning lower ever since the sharp rally on the final day of January, with the pair retracing the ascent from $1.0620. Despite this short-term weakness, there is still a good chance we will see the pair turn higher in accordance with the trend seen over the past month.

A break back below $1.0620 would negate that trend, and until then there is a possibility we will soon turn higher once more. There is still a chance the current ascendancy represents a retracement of the fall from $1.0874. However, with price running, so far, above the 76.4% retracement, this is becoming less likely. A break above $1.0874 would provide a bullish medium-term view.

GBP/USD break towards double top neckline

GBP/USD has dropped below the 76.4% retracement this morning, following a sharp decline on Thursday. The double top neckline of $1.2412 is crucial here, with an hourly close below that level providing a bearish view.

Until that happens, there is a decreasing chance of a bounce in line with the uptrend evident over recent weeks.  

NZD/USD back to triangle top

NZD/USD has returned to the top of its symmetrical triangle formation, with the pair proving indecisive around the crucial trendline resistance zone.

Over the short-term, there is a good chance we could see the pair fall back once more. However, for a directional breakout, we will be looking for an hourly close below $0.7243 or above $0.7337.

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