EUR/USD, GBP/USD, and NZD/USD start to weaken after recent gains
EUR/USD, GBP/USD and NZD/USD lose ground after recent gains, but will this be the beginning of a period of downside?
EUR/USD rolling over after deep retracement
EUR/USD has been on the rise over the course of the week, with the pair regaining much of the ground lost over the prior two-weeks. However, with the price having pushed into the a confluence of the 200-simple moving average (SMA) and 76.4% Fibonacci retracement, there is a good chance we see the recent bearish trend come back into play here.
With that in mind, watch for a potential breakdown below this first swing low of $1.2113 to bring greater confidence of near-term weakness. To the upside, we would need to see a break through the $1.219 level to negate the recent bearish trend.
GBP/USD pulls back after recent gains
GBP/USD has started to ease back after the latest push into multi-year highs, with the pair clearly trading within a bullish trend. That trend remain in play until we start breaking from this wider pattern of higher lows.
As such, the current pullback looks like a retracement phase and buying opportunity unless we see price break through $1.368. Even in that case, we ultimately would need to see $1.3566 broken to bring a wider trend reversal signal. Until then, further upside seems to be around the corner.
NZD/USD turning lower from range resistance
NZD/USD has been trading within a consolidation range over the course of the past month, with the pair appearing to once again respect the upper boundary of that pattern yesterday. With the price turning back into the $0.7199 support level this morning, a break below that point could bring another leg down towards the lower thresholds of the range.
That being said, the recent creation of higher lows does point towards a potential move into Fibonacci support if we do see that breakdown. With that in mind, near-term sentiment will be guided by whether the pair breaks or rebounds from the $0.7199 support level.
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