Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

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

Mixed moves for the dollar have seen NZD/USD gain ground, while EUR/USD and GBP/USD drift lower. However, there is a good chance we will see all three head lower from here.

Video poster image

EUR/USD wedge break points towards potential upside

EUR/USD has managed to rally through trendline resistance, completing a bullish breakout from the falling wedge formation in play over the past week. This points towards a potential bullish phase coming into play this week.

However, it makes sense to watch out for a rally through $1.1432 to confirm this bullish view. Until then, the downtrend remains intact, with the price continuing to create lower highs and lower lows after Friday’s rally into the 76.4% retracement.

GBP/USD turns lower despite stochastic breakout

GBP/USD is turning lower yet again, following on from a rebound off the $1.2785 support level on Friday.

That rebound from the September low coincided with the stochastic breaking higher from a wedge/triangle formation, thus pointing towards a potential period of upside to come. However, until we see the price form a higher high (above $1.2843), this downtrend remains in play.

NZD/USD turning lower after rally into 61.8% resistance

NZD/USD managed to rally sharply on Friday, bringing the pair into the wider retracement of the sell-off from $0.6607.

Watch for a potential bearish reversal from here, with a rally above $0.6607 required to negate the wider bearish outlook for the pair.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer

Find out more about