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EUR/USD, GBP/USD and NZD/USD slide towards key support levels

EUR/USD, GBP/USD and NZD/USD come under pressure, as dollar strength drives them into key support levels.

EUR/USD threatens to negate two-month uptrend

EUR/USD has been declining sharply since Thursday’s peak, with the pair now within touching distance of the critical $1.1085 support level.

A break below that level would signify an end of the uptrend that has been in play since November. Instead it would point towards a continuation of the wider two-year downtrend. As such, watch for the reaction to this current $1.1085-$1.1066 support zone as a guide on where we go from here.

GBP/USD declines back into key support zone

GBP/USD has also been under pressure, with the pair falling below $1.2985 support to bring about a heightened chance of a breakdown.

We still have trendline and horizontal ($1.2954) support to contend with. Therefore, the outlook will be driven by the reaction to this area of support.

NZD/USD pullback risks break from recent bullish rise

NZD/USD managed to break out from its recent trend of lower highs by pushing through the $0.6653 resistance level on Thursday.

That points towards a likely reversal higher for the pair. However, as part of a wider dollar surge, we are now seeing this pair come under pressure as we move closer to the key $0.6584 level. A break below that level would ramp up the likeliness of further downside for the pair. With that in mind, we need to see whether the pair breaks $0.6584 or $0.6665 to bring a more confident outlook going forward.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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