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

The dollar rally is easing, with EUR/USD, GBP/USD and NZD/USD all gaining ground. However, with wider bearish pictures intact, this rebound could be relatively short-lived.

EUR/USD rallies back into trendline resistance

EUR/USD has started strengthening after last week’s declines, with the price having rallied into trendline resistance.

The break below the $1.1305 mark last week provides a bearish signal and allows greater confidence that this rally will fall short of the $1.1393 swing before breaking lower once again. Whether that bearish turn takes place from here or not remains to be seen, yet a bearish outlook is preferred unless we break the $1.1393 level.

GBP/USD regaining ground after head and shoulders breakdown

GBP/USD spent the end of last week falling after completing a head and shoulders formation. We are seeing the pair regain ground this morning, bringing about a possibility of a wider 76.4% retracement beyond the 61.8% retracement seen last week.

However, there is also a good chance that we are looking at a retracement of the sell-off seen from Thursday’s high. As such, further near-term upside looks likely, with the size of that upside determined by the ability to break $1.2687.

NZD/USD heading towards rebound confirmation level

NZD/USD is rising towards the key $0.6813 level this morning, with the resulting double bottom formation heightening the likeliness of a period of upside.

Coming off the back of a sharp deterioration last week, such a rebound could be notable without even requiring a break through the $0.6879 swing high. As such, keep an eye out for that $0.6813 level as a key determinant of market bias for the day ahead.

IGA, may distribute information/research produced by its respective foreign affiliates 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.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. 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, and 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.

Please see important Research Disclaimer.

See an opportunity to trade?

Go long or short on more than 17,000 markets with IG.

Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.