Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

EUR/USD, GBP/USD and NZD/USD weaken on risk-off move

EUR/USD, GBP/USD and NZD/USD weaken as dollar gains from a wider risk-off market sentiment.

​EUR/USD declines into key support

EUR/USD has weakened into the key $1.1259 swing low overnight, with the recent intraday rally coming into question. That level is going to be key in determining whether we are going to end the week on a positive note or continue to lose ground.

A drop below this support level would point towards a more bearish short-term trajectory coming into play. However, flatlining lows are also permissible within an uptrend, and thus there is a chance we reverse higher from here to continue the recent uptrend.

GBP/USD pulls back within recent uptrend

GBP/USD has been experiencing an impressive week, with the pair managing to break into the highest level in almost a month yesterday. However, risk-off sentiment seen throughout markets today are driving dollar demand that is sending this pair lower.

With that in mind, there is a good chance we will see further downside if that wider market theme persists. Nevertheless, the pair remains within an uptrend as things stand, with the price currently respecting the 61.8% Fibonacci retracement level at $1.257. Ultimately, we need to see swing lows such as $1.2508 and $1.2438 to break for this uptrend to reverse into a more bearish picture. Until then, there is a chance we start to rise again before long to continue the current trend.

NZD/USD declines into trendline support

NZD/USD has similarly weakened overnight, with the pair declining into trendline support in early hours. That trendline is going to be key here, with a break below it providing the potential beginning of a more bearish move.

Ultimately, we would need to see the $0.6519 level broken to bring that bearish short-term picture. Until then, another move higher looks likely to continue this recent uptrend.

This information has been prepared by IG, a trading name of IG US LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. Any research provided should be considered as promotional and was prepared in accordance with CFTC 1.71 and designed to promote the independence of investment research. See our Summary Conflicts Policy, available on our website.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.8 pips on EUR/USD
  • Analyze market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on the most popular forex markets

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only

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 forex provider.

Stay on top of upcoming market-moving events with our customisable economic calendar.