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.
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