EUR/USD, GBP/USD and NZD/USD decline towards key support
EUR/USD, GBP/USD and NZD/USD pull back after recent ascent, with key support coming into play.
EUR/USD pulls back from key resistance
EUR/USD saw sharp downside on Friday, following on from the rally into the $1.1179 resistance level.
The subsequent sell-off managed to maintain the trend of higher lows, yet the rally seen yesterday does raise questions given the inability to break through Friday’s high of $1.12. As such, a break below $1.1112 would bring about a more bearish picture for the coming days. Therefore, it makes sense to await a break below $1.1112, or above $1.12 to signal where we go from here.
GBP/USD slumps after Boris deadline hits confidence
GBP/USD upside has been limited by UK Prime Minister Boris Johnson's decision to impose a limit on the time allowed for UK-EU trade talks. We have seen the pound on the slide as a result, with GBP/USD returning towards the pre-election low of $1.305.
With the price starting to turn higher there is a strong chance we will see the pair start to reverse upward from here. As such, watch for a potential rebound over the short term, with a break below $1.305 required to bring about a bearish continuation signal.
NZD/USD heading lower after GDT decline
NZD/USD has been on the slide after a disappointing global dairy trade (GDT) figure yesterday, with the pair heading into the 76.4% retracement level this morning.
The rally seen over the past month does remain intact, where we would need to see a break below $0.6522 to negate that trend. With that in mind, watch for how we respond to this Fibonacci support at $0.6549, with a break below $0.6522 needed to bring a 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.
