FX levels to watch: EUR/USD, GBP/USD and NZD/USD
EUR/USD and NZD/USD look likely to turn lower once more, despite recent gains. Meanwhile, GBP/USD weakness is taking the pair into a crucial Fibonacci level.
EUR/USD consolidation likely to lead into further downside
EUR/USD has rebounded overnight, following a period of weakness throughout much of yesterday’s session. Coming off the back of a 61.8% retracement, the gains we have seen look like a retracement of that prior shift lower.
The ability to remain below the $1.122 level will be key to further downside, where a rise through the overnight high would point towards a move into the $1.1234 Fibonacci level. Ultimately, we need to see a move through the $1.1265 swing high to negate the wider bearish trend.
GBP/USD uptrend remains intact despite pullback
GBP/USD has seen sharp losses throughout the course of this week, with relatively consistent selling taking shape since Friday’s sudden rise.
The creation of higher highs and higher lows points towards a strong possibility of another rise before long, with a fall below $1.2968 required to negate the current uptrend. Watch out for how the pair responds to the 76.4% retracement at $1.3033 as a signal of whether we are in a retracement phase or possibly not.
NZD/USD rebounds after initial sell-off
NZD/USD sold off sharply overnight, following a rate cut from the Reserve Bank of New Zealand (RBNZ).
However, that weakness failed to last, with the pair moving higher since. Watch for whether we can see a move through the $0.6605 swing high to point towards further upside. Until then, there is a chance we could see the sellers come back into play from here.
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.
