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 signalling a greater likelihood of further downside to come.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa 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
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
