EUR/USD, GBP/USD and NZD/USD drop into support amid dollar resurgence
EUR/USD, GBP/USD and NZD/USD pull back into key support levels after the dollar finds support.
EUR/USD breaking lower after recent surge
EUR/USD is finally showing signs of a potential bearish turn, with the price breaking below trendline support this morning. With the price falling back into oversold territory, the question from here is whether we see the price break below the recent low of $1.1698.
Until that happens, we need to see how the pair responds to this 76.4% Fibonacci support level at $1.1748. With the stochastic heading back into oversold territory, we would need to see a break back up through that 20 threshold to bring about a more bullish signal here.
GBP/USD declines lead the pair into channel support
GBP/USD has declined into a confluence of channel and 50% Fibonacci support. The uptrend seen throughout the final week of July does still remain in play despite the downside that was seen either side of the weekend.
As such, there is a chance we could see the pair turn higher once more from here. Ultimately we would need to see a break back below the $1.2944 support level to negate this bullish trend.
NZD/USD pullback brings pair into key support level
NZD/USD has similarly seen significant downside to end last week, with the price falling back below trendline support.
However, the $0.6614 level provides a final hurdle if we are going to see the pair turn lower in a more significant manner. As such, ongoing sentiment will be driven by the ability to break or rebound from this $0.6614 level.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa 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. See full non-independent research disclaimer and quarterly summary.
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
Prices above are subject to our website terms and agreements. Prices are indicative only
