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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

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

The dollar appears to be coming back to strength, with EUR/USD, GBP/USD and NZD/USD all turning lower. Could this be the beginning of another dollar rally?

Nzd
Source: Bloomberg

Is EUR/USD on the turn?

Yesterday’s rally for EUR/USD failed to follow through, with price pushing back below Wednesday’s low of $1.0640 this morning.

The key signal of a reversal would be a break back below $1.0620. The clue that this uptrend is going to persist would be a break through $1.0710. 

GBP/USD starting to weaken once more

IN_GBPUSD looks like turning lower from the 61.8% retracement this morning, which seeks to follow up on Tuesday’s break below the $1.2412 mark.

Unless we see a break above $1.2706, this looks like we could see another move lower in the near-term. A break through $1.2706 is needed for a bullish outlook to reemerge.

NZD/USD triangle points to further losses

This week has seen IN_NZDUSD turn a corner, with the break back below $0.7222 pointing towards a bearish reversal. The current symmetrical triangle pattern is likely to break lower given the trend coming into it.

However, for greater confidence, an hourly close below $0.7172 would provide a strong bearish signal for the pair.

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