EUR/USD, GBP/USD and NZD/USD diverge as NZD shows strength
EUR/USD, GBP/USD and NZD/USD diverge as sterling weakness plays out despite NZD strength.
EUR/USD consolidates at key support level
EUR/USD has dropped back into the $1.1112 support level this week, with the price now consolidating around that swing low. The fact that we have seen the price fall into that level points towards a likely move lower over the near term.
However, it will depend on whether we see a break below here or not. As such, watch for whether or not we break below $1.1112 to guide today's trade.
GBP/USD drops below key support level
GBP/USD has seen sharp declines throughout the week, with the pair finally breaking below the crucial $1.305 support level. That signals that there is a good chance we will see further downside to come.
For now, the price is held up around the 200 simple moving average (SMA) on the four-hour chart and $1.2985 support level. However, there is a strong chance we will see further downside, with a break through $1.3133 needed to bring about a more positive outlook once more.
NZD/USD back into key resistance
NZD/USD has managed to rally back into the $0.6614 resistance level following a short-term pullback earlier in the week. The wider bullish trend remains intact and thus further gains seem likely.
Watch for a break through $0.6614 to bring about expectations of a rally into $0.6636. Alternatively, a break back below $0.6554 would be required to bring a more bearish outlook.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
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
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
