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FX levels to watch – EUR/USD, EUR/GBP, NZD/USD

EUR/USD looks set for further gains, despite the weakness seen in EUR/GBP. Meanwhile, NZD/USD is expected to continue its recent downtrend.

anonymous

Publication date : 2022-07-10T03:41:49+0100

Euros

Source: Bloomberg

EUR/USD looks set for push higher

EUR/USD managed to break higher overnight, following a deep retracement which ran past the 76.4% level. However, we have since seen a break back through the first swing high at $1.1905, pointing towards the beginning of the expected resurgence.

With that in mind, it would take a break back below the $1.1824 level to negate the current bullish outlook, where the current weakness looks like a retracement before the pair moves higher once more. As such, it makes sense to look out for the 61.8% ($1.1861) and 76.4% ($1.1846) as potential areas of value to get long.

EUR/USD chart

EUR/USD chart

EUR/USD chart

EUR/GBP hesitates above support after trendline break

EUR/GBP has managed to break through a month long ascending trendline overnight, providing the potential for a bearish shift for the pair. The key here is whether we will see a break through the £0.9190 support level. Should that occur, we would be looking at a good chance of a shift in tone for the coming period.

As such, we have a very clearly defined level of support that will set the tone for the day, with bullish views above and bearish below.

EUR/GBP chart

EUR/GBP chart

EUR/GBP chart

NZD/USD continues to trend lower

NZD/USD has been one of the most consistent downtrends of all the major markets against the dollar, with the break below $0.7202 completing a major head and shoulders formation on the daily timeframe. We continue to see the follow through of that move, with the pair moving lower again this morning after a shallow retracement overnight.

There is a chance we could see a deeper retracement of the wider move from $0.7299, at which point the Fibonacci retracements come in as potential areas to look for shorts. However, an hourly close below $0.7132 would point towards a continuation of the recent downtrend.

NZD/USD chart

NZD/USD chart

NZD/USD chart

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This information has been prepared by IG, a trading name of IG Markets Limited 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. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Clients can lose more than they deposit. All trading involves risk.

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