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.
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