EUR/USD, GBP/USD and NZD/USD weaken on risk-off move
EUR/USD, GBP/USD and NZD/USD weaken as dollar gains from a wider risk-off market sentiment.
EUR/USD declines into key support
EUR/USD has weakened into the key $1.1259 swing low overnight, with the recent intraday rally coming into question. That level is going to be key in determining whether we are going to end the week on a positive note or continue to lose ground.
A drop below this support level would point towards a more bearish short-term trajectory coming into play. However, flatlining lows are also permissible within an uptrend, and thus there is a chance we reverse higher from here to continue the recent uptrend.
GBP/USD pulls back within recent uptrend
GBP/USD has been experiencing an impressive week, with the pair managing to break into the highest level in almost a month yesterday. However, risk-off sentiment seen throughout markets today are driving dollar demand that is sending this pair lower.
With that in mind, there is a good chance we will see further downside if that wider market theme persists. Nevertheless, the pair remains within an uptrend as things stand, with the price currently respecting the 61.8% Fibonacci retracement level at $1.257. Ultimately, we need to see swing lows such as $1.2508 and $1.2438 to break for this uptrend to reverse into a more bearish picture. Until then, there is a chance we start to rise again before long to continue the current trend.
NZD/USD declines into trendline support
NZD/USD has similarly weakened overnight, with the pair declining into trendline support in early hours. That trendline is going to be key here, with a break below it providing the potential beginning of a more bearish move.
Ultimately, we would need to see the $0.6519 level broken to bring that bearish short-term picture. Until then, another move higher looks likely to continue this recent uptrend.
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