EUR/USD, GBP/USD and NZD/USD diverge as NZD shows strength
EUR/USD, GBP/USD and NZD/USD diverge as sterling weakness plays out despite NZD strength.
EUR/USD consolidates at key support level
EUR/USD has dropped back into the $1.1112 support level this week, with the price now consolidating around that swing low. The fact that we have seen the price fall into that level points towards a likely move lower over the near term.
However, it will depend on whether we see a break below here or not. As such, watch for whether or not we break below $1.1112 to guide today's trade.
GBP/USD drops below key support level
GBP/USD has seen sharp declines throughout the week, with the pair finally breaking below the crucial $1.305 support level. That signals that there is a good chance we will see further downside to come.
For now, the price is held up around the 200 simple moving average (SMA) on the four-hour chart and $1.2985 support level. However, there is a strong chance we will see further downside, with a break through $1.3133 needed to bring about a more positive outlook once more.
NZD/USD back into key resistance
NZD/USD has managed to rally back into the $0.6614 resistance level following a short-term pullback earlier in the week. The wider bullish trend remains intact and thus further gains seem likely.
Watch for a break through $0.6614 to bring about expectations of a rally into $0.6636. Alternatively, a break back below $0.6554 would be required to bring a more bearish outlook.
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