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

The dollar is coming under pressure, with EUR/USD, GBP/USD, and NZD/USD all pushing higher. Is this a short-term phenomenon or the beginning of a wider shift?

EUR/USD breaks through key resistance level

EUR/USD has managed to rally through the $1.1432 swing high this morning, breaking out of the downtrend that has been in play throughout the second half of October.

The rally through $1.1421 and $1.1432 looks to set us up for further upside, with the current shift looking likely to provide a retracement of $1.1622 at least. With that in mind, watch out for further upside, with a drop below $1.1391 required to erode that bullish short-term picture.

GBP/USD rallies into notable resistance zone

GBP/USD has also managed to rebound sharply, with the price shifting back into the 61.8% Fibonacci resistance level. That Fibonacci level coincides with the 200-day simple moving average (SMA), highlighting the importance of it as a region of resistance. With that in mind, watch for a potential response from here.

A break above the $1.3258 level would signal a possible wider recovery. Until then, there is a strong chance that this will be a retracement, with either the 61.8% or 76.4% Fibonacci resistance level coming into play.

NZD/USD boosted by Trump-Xi talks

NZD/USD has managed to rebound sharply after US President Donald Trump and Chinese President Xi Jinping seemingly started renegotiating once again.

This is raising the possibility of a bullish reversal for the likes of AUD/USD and NZD/USD, with the market likely to be sensitive to any further announcements. The key for NZD/USD is whether we see a break through the $0.6698 resistance level, with such a move providing us with a signal of a potential bullish breakout for the medium term.

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