EUR/USD, GBP/USD and NZD/USD turn higher after recent losses
EUR/USD, GBP/USD, and NZD/USD start to turn higher, with improved wider risk sentiment helping to drive dollar weakness.
EUR/USD consolidates after 61.8% retracement
EUR/USD has been attempting to regain ground after its recent decline into the critical $1.1754 support level last Wednesday. The ability to maintain the wider bullish trend will come down to whether we break through $1.2011 (bullish continuation), or $1.1754 (bearish reversal).
Until then, we are attempting to ascertain which of those is most likely. The price respected the 61.8% Fibonacci resistance level last Thursday, pointing towards a potential bearish turn. However, with risk sentiment improving in stocks to the detriment of the dollar, there is grounds for further EUR/USD upside if that sentiment holds. As such, there are arguments on both sides, and a more confident outlook will only come once we start seeing those important levels break.
GBP/USD consolidates after latest decline
GBP/USD has been hit hard over the first two weeks of September, with the pair dropping into a six-week low on Friday.
Given the clear short-term downtrend in play, further downside looks likely today. However, with Johnson seeking approval for his controversial Brexit bill today, this pair looks likely to find plenty of volatility today. Ultimately we would need to see the $1.3035 level broken to bring an end to this downtrend.
NZD/USD attempting to regain lost ground
NZD/USD has been on the rise since finding support on the 61.8% Fibonacci retracement last Tuesday.
The wider bullish trend remains intact here, with another leg higher looking likely before long. For the near term, a break through the $0.6709 level would bring about a bullish confirmation continuation signal.
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