EUR/USD, GBP/USD and NZD/USD ease back after recent gains
EUR/USD, GBP/USD and NZD/USD start to weaken despite the gains seen over recent days.
EUR/USD easing back after yesterday's gains
EUR/USD managed to break from the recent downtrend yesterday, with the pair pushing out of the recent descending channel to bring a more bullish outlook. This morning is being dominated by the European Union's (EU's) failure to agree a coronavirus package, and thus the pair is losing ground.
However, this potential reversal still remains in play, with the price having found support on the 61.8% Fibonacci level this morning. With that in mind, there is a good chance we will see this pair turn higher, with a bearish outlook only coming back into play if we see a break below $1.0768.
GBP/USD consolidates after breaking key resistance
GBP/USD has been flatlining overnight, with yesterday's break through $1.2327 easing fears of a bearish reversal for the short term. We are back within the $1.2244-$1.2475 zone that capped much of the price action last week.
Thus, a break through $1.2475 or $1.2165 will provide a better idea of whether we are due a bearish reversal or bullish continuation. Until then, watch for whether we break below $1.2282 in the near term, with the ability or inability to break that level providing us with a better idea of whether we are set for further short-term downside.
NZD/USD leading the way lower
One currency pair that seems to be leading the way lower is NZD/USD, with the pair turning lower from the 76.4% Fibonacci resistance level. The failed rally this morning looks to be creating another lower high and lower low to bring greater confidence in this bearish move.
With that in mind, further downside looks likely, with a break below $0.5941 and in particular the $0.592 level signaling a greater likelihood of further downside to come.
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