FX levels to watch: EUR/USD, GBP/USD and NZD/USD
EUR/USD, GBP/USD and NZD/USD all look at risk of further downside, with key support levels coming into play.
EUR/USD continues to consolidate after 61.8% retracement
EUR/USD rebounded into the 61.8% retracement on Friday, with the pair drifting lower since. However, the market has largely consolidated rather than posting another leg lower.
Despite that, it makes sense to watch out for a move to the downside before long as the pair continues the wider bearish trend. Conversely, a break through $1.122 would negate that possibility and points towards a larger rise into the $1.1234 Fibonacci resistance level.
GBP/USD falls back to crucial support level
GBP/USD fell into the key $1.2989 support level yesterday, confirming the break out of the recent uptrend.
This morning has seen the price gradually shift higher, forming a flag style pattern. This points towards a likely break lower from here, where a fall below $1.2989 would provide us with the bearish confirmation signal. Alternately, we would need to see a break through the $1.308 wing high to bring about a more bullish short-term view.
NZD/USD back at trendline resistance
NZD/USD is back into its steady downtrend following the brief post-Reserve Bank of New Zealand (RBNZ) volatility yesterday.
The rebound into trendline resistance this morning points towards another turn lower from here. A break through $0.6587 would be required to signal a more bullish picture and, until then, it looks likely we will see the pair turn lower once more from here.
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.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
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 spread betting and CFDs.
Stay on top of upcoming market-moving events with our customisable economic calendar.