EUR/USD, GBP/USD, and NZD/USD on the rise, but questions remain
EUR/USD, GBP/USD, and NZD/USD regain ground, yet wider bearish trends point towards the potential for another move lower.
EUR/USD rallies towards crucial resistance level
EUR/USD has been on the rise over the course of the past two weeks, with April proving a much more positive period compared with March thus far. The wider downtrend had been expected to kick in once again given the recent rise and respect of the 76.4% Fibonacci resistance level.
However, with the price breaking through that level, we are moving ever closer to the key $1.199 swing high. A break through that level would bring about greater expectation of a bearish reversal from here. Until that happens, there is still a chance we reverse lower to continue the bearish trend that has been dominating 2021 thus far.
GBP/USD recovering from key support
GBP/USD has been on the rise since hitting the $1.367 support level on Monday, with the pair starting to regain lost ground. The question here is whether we see a continuation of the recent trend of lower highs or not.
As such, until we see price rise through the $1.3919 level, there is a chance that the current rise is a precursor to another leg higher. As such, while we could see short-term gains from here, we remain within a six-week downtrend that is yet to break.
NZD/USD on the rise despite dovish RBNZ stance
The Reserve Bank of New Zealand (RBNZ) reiterated a dovish stance overnight, yet we saw NZD/USD gain ground in the hours following. This latest push higher sees the pair build on the gradual gains seen over the course of the past three weeks.
However, with the pair seemingly retracing the mid-March sell off, there is a risk that this current rise loses traction around the 61.8% to 76.4% Fibonacci zone ($0.7145-$0.7192). Ultimately we will need a break up through the $0.727 level to bring about an end to the recent bearish trend.
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