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

A pivotal time for EUR/USD, GBP/USD, and NZD/USD provides us with a crucial day of trading to set up the week.

Euros and dollars
Source: Bloomberg

EUR/USD pullback unlikely to last

EUR/USD has drifted lower this morning, with the pair moving into trendline and horizontal support, at $1.1790. With the price having broken higher from a bullish wedge pattern yesterday, it looks likely that we will see the pair turn higher once more before long.

As such, a bullish view is in play unless we see a break back below $1.1731.

GBP/USD turns lower from trendline resistance

GBP/USD worked out perfectly yesterday, as the pair rallied back into trendline and range resistance at $1.2909. With the price turning lower once more, we are expecting to see a move back into the $1.2841 support level. We continue to trade in a short-term downtrend, above a crucial support level ($1.2811).

While the typical breakout would be expected to come to the downside, we would need to break and hold below $1.2811 to bring about a confidence bearish outlook from here. Until then, it makes sense to continue to play the $1.2841-$1.2909 range.

NZD/USD respects triangle resistance

NZD/USD is selling off from the $0.7335 resistance level once more this morning, with the price moving back into the notable $0.7305 swing low. A break below there could be a warning sign of impending weakness, which would be a move in favour of the prevailing trend seen over the past three weeks.

Ultimately, it makes more sense to await a break and hourly close either above $0.7335, or below $0.7376 to guide our outlook for the pair.

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