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

EUR/USD and GBP/USD strength looks likely to resume, yet NZD/USD is showing signs of potential weakness.

New Zealand dollar
Source: Bloomberg

EUR/USD rallies back towards key resistance

EUR/USD has had a strong week, with the pair pushing back towards trendline resistance once more. For now we are seeing a shallow sloped consolidation, which points towards another potential move higher out of this pattern.

A break through $1.1428 would point towards a move back into trendline resistance at $1.1445. Until that happens, watch the shorter term intraday charts for a potential sign of that next leg higher.

GBP/USD pullback unlikely to last

GBP/USD is moving lower this morning, following a bullish break through $1.2948 and $1.2959 resistance. This morning has seen a move back into the 50% retracement, but no matter whether we fall lower than that or not, a bullish view remains in place, and a move back towards the $1.3000 area is likely.

A trendline break and move back below $1.2924 would negate this view.

NZD/USD showing signs of potential weakness

NZD/USD is flatlining this week, coming off the back of a strong June. We have seen the gradual creation of lower highs and lower lows, pointing towards the potential for another move lower from this 50-day simple moving average (SMA).

Whether this is a market top or not is another matter, but for now we look like we have a good chance of another move to the downside for the pair. A break up through $0.7300 would point towards the recent uptrend coming back into play.

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