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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

FX levels to watch – EUR/USD, GBP/USD, NZD/USD

The dollar appears to be coming back to strength, with EUR/USD, GBP/USD and NZD/USD all turning lower. Could this be the beginning of another dollar rally?

Nzd
Source: Bloomberg

Is EUR/USD on the turn?

Yesterday’s rally for EUR/USD failed to follow through, with price pushing back below Wednesday’s low of $1.0640 this morning.

The key signal of a reversal would be a break back below $1.0620. The clue that this uptrend is going to persist would be a break through $1.0710. 

EUR/USD price chart

GBP/USD starting to weaken once more

IN_GBPUSD looks like turning lower from the 61.8% retracement this morning, which seeks to follow up on Tuesday’s break below the $1.2412 mark.

Unless we see a break above $1.2706, this looks like we could see another move lower in the near-term. A break through $1.2706 is needed for a bullish outlook to reemerge.

GBP/USD price chart

NZD/USD triangle points to further losses

This week has seen IN_NZDUSD turn a corner, with the break back below $0.7222 pointing towards a bearish reversal. The current symmetrical triangle pattern is likely to break lower given the trend coming into it.

However, for greater confidence, an hourly close below $0.7172 would provide a strong bearish signal for the pair.

NZD/USD price chart

This information has been prepared by IG, a trading name of IG 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. 

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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