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

European currencies look set for near-term weakness, while NZD/USD continues to power upwards.

EUR/USD turning lower from Fibonacci resistance

EUR/USD has managed to rally into the 76.4% retracement this morning, following on from a wider downturn from the 61.8% resistance at $1.1394.

With a bearish, engulfing pattern looking likely from this resistance level, coupled with a wider bearish trend over recent months, another bearish period looks likely for the near term.

GBP/USD rally proving short-lived

GBP/USD has been moving sharply higher this morning, yet just like EUR/USD, we are seeing the 76.4% Fibonacci resistance level respected.

The trend over the past week has been one of consolidation, with a failure to break below the crucial $1.2661-$1.2696 support zone meaning we still await the next signal of where we go from here. A break below that zone would set us up with another bearish phase. Conversely, should we see a break through the $1.2850 mark, it would bring about a more bullish view for the near term.

NZD/USD surges higher from triangle formation

NZD/USD has managed to continue its bullish trend, with an upside breakout from a symmetrical triangle formation providing another leg higher for the pair.

Further gains do look likely, with any retracement looking like a buying opportunity as long as we do not break below $0.6851.

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