EUR/USD, GBP/USD, and NZD/USD retracements could bring buying opportunity
EUR/USD, GBP/USD, and NZD/USD weaken in early trade, yet that retracement could bring another buying opportunity.
EUR/USD seemingly in retracement mode within recent uptrend
EUR/USD has been on the rise over the course of April, with the pair moving into a two-month high yesterday. That latest push higher took us beyond the 76.4% Fibonacci resistance level, raising the likeliness that we are on track for a push up towards the $1.2243 resistance level.
Notably, we are seeing a bearish divergence on the stochastic, but it makes sense to await a break below $1.2057 level to bring about a reversal signal. Until then, this current move lower looks like another potential buying opportunity. Watch out for trendline and Fibonacci support as potential areas for the bulls to come back into play.
GBP/USD rolling over on the way to resistance
GBP/USD remains stuck within the $1.4006-$1.367 zone, with the latest rally taking us back towards the top end of that range. However, this morning we are seeing the pair turn lower, which highlights the potential for a continuation of this consolidation phase. Ultimately we would need to see that $1.4006 level broken to bring a wider bullish trend in play.
To the downside, a break below $1.3861 would signal a potential pullback towards the $1.367 range low. Nonetheless, it is notable that the recent lows of $1.3823 highlight the potential for a bullish inverse head and shoulders formation for the pair. As such, Until then, this pullback could be another retracement as we head towards the $1.4006 resistance level.
NZD/USD pullback could bring buying opportunity
NZD/USD has started to ease back this morning, following a bullish breakout through $0.7265 on Wednesday night. That signals a potential bullish continuation for the pair, with a break below $0.7188 required to bring about a bearish signal.
Until then, this current move lower appears to be another retracement within an uptrend that has dominated the month of April. Look out for Fibonacci support at $0.7211 and $0.7226 as potential areas for the bulls to come back into play.
The information 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 Bank S.A. 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 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.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
