NZD/USD approaches key bullish breakout level
Short term dollar weakness is providing a rebound for the likes of GBP/USD, EUR/USD, and NZD/USD. While the European currencies remain at risk, NZD/USD appears to be taking on a more bullish picture.
EUR/USD turning lower from trendline resistance
EUR/USD managed to rebound from the $1.1107-$1.1116 support zone last week.
The downtrend seen throughout the course of 2019 remains in play if we continue to see the prices exhibit lower highs. As such, a rally through $1.1215 would negate this bearish picture. However, until that happens it looks likely we will see the pair turn lower once again to head towards that same support zone.
GBP/USD downtrend expected to persist
Marginal gains for GBP/USD on Friday have provided us with a new retracement phase within a clear and consistent downtrend.
The creation of lower highs remains key here, with a break through the $1.2748 swing high required to negate this bearish trend. Until then, there is a strong chance we will soon see the pair turn lower once again. Watch for the stochastic to drop below 80 as a bearish confirmation signal.
NZD/USD trading at key resistance level
NZD/USD managed to rally into the $0.6559 resistance level over the course of Friday, with the pair showing the potential to regain a more bullish picture should that level break.
Given the creation of a higher low last week, things are starting to look more optimistic, especially when considering that this potential double bottom formation comes after a bullish trendline break in late May. As such, look out for whether we see a break through the $0.6559 swing-high to signal a more bullish outlook for this pair.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research 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.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
