EUR/USD, GBP/USD and NZD/USD turn higher after recent losses
EUR/USD, GBP/USD, and NZD/USD start to turn higher, with improved wider risk sentiment helping to drive dollar weakness.
EUR/USD consolidates after 61.8% retracement
EUR/USD has been attempting to regain ground after its recent decline into the critical $1.1754 support level last Wednesday. The ability to maintain the wider bullish trend will come down to whether we break through $1.2011 (bullish continuation), or $1.1754 (bearish reversal).
Until then, we are attempting to ascertain which of those is most likely. The price respected the 61.8% Fibonacci resistance level last Thursday, pointing towards a potential bearish turn. However, with risk sentiment improving in stocks to the detriment of the dollar, there is grounds for further EUR/USD upside if that sentiment holds. As such, there are arguments on both sides, and a more confident outlook will only come once we start seeing those important levels break.
GBP/USD consolidates after latest decline
GBP/USD has been hit hard over the first two weeks of September, with the pair dropping into a six-week low on Friday.
Given the clear short-term downtrend in play, further downside looks likely today. However, with Johnson seeking approval for his controversial Brexit bill today, this pair looks likely to find plenty of volatility today. Ultimately we would need to see the $1.3035 level broken to bring an end to this downtrend.
NZD/USD attempting to regain lost ground
NZD/USD has been on the rise since finding support on the 61.8% Fibonacci retracement last Tuesday.
The wider bullish trend remains intact here, with another leg higher looking likely before long. For the near term, a break through the $0.6709 level would bring about a bullish confirmation continuation signal.
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