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

The dollar appears to be coming back to strength, with EUR/USD, GBP/USD and NZD/USD all turning lower. Could this be the beginning of another dollar rally?

Source: Bloomberg

Is EUR/USD on the turn?

Yesterday’s rally for EUR/USD failed to follow through, with price pushing back below Wednesday’s low of $1.0640 this morning.

The key signal of a reversal would be a break back below $1.0620. The clue that this uptrend is going to persist would be a break through $1.0710. 

GBP/USD starting to weaken once more

IN_GBPUSD looks like turning lower from the 61.8% retracement this morning, which seeks to follow up on Tuesday’s break below the $1.2412 mark.

Unless we see a break above $1.2706, this looks like we could see another move lower in the near-term. A break through $1.2706 is needed for a bullish outlook to reemerge.

NZD/USD triangle points to further losses

This week has seen IN_NZDUSD turn a corner, with the break back below $0.7222 pointing towards a bearish reversal. The current symmetrical triangle pattern is likely to break lower given the trend coming into it.

However, for greater confidence, an hourly close below $0.7172 would provide a strong bearish signal for the pair.

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