EUR/GBP is currently testing the falling trend line on the 4-hour time frame, suggesting that another sharp drop might take place sooner or later. In terms of economic data, the euro zone is definitely doing worse than the U.K. so it’s reasonable to take a bearish fundamental bias on this pair.
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The US dollar dominated against its major forex counterparts in recent trading, as US bond yields renewed demand for the currency.
GBP/USD has been finding support around the 1.6750 minor psychological level, which coincides with a longer-term rising trend line, for quite some time now. However, the pair just made a strong downside break, indicating that a deeper selloff could be the in the cards.
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The return of US traders from their Memorial Day holiday lent support to the dollar, along with stronger than expected headline durable goods orders data.
NZD/USD might be due for a bounce this week, as the US gears up to release a downward revision in its Q1 GDP reading. The figure was initially reported at 0.1% but analysts predict that the second version could show a downgrade to -0.6%, effectively showing an economic contraction for the period.
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The US dollar showed signs of weakness at the start of the week, as the absence of US traders who were on a Memorial Day holiday left the dollar with very little support.
AUD/JPY recently made a strong break below a support level and may be ready for a quick retracement before resuming its drop. The pair previously found support at the 94.50 minor psychological level and the break took it down to the 93.00 level.
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The US dollar had a mixed performance at the end of the week as risk sentiment and profit-taking played key roles in dictating currency price action.
NZD/USD is currently testing a major support level, visible on the 4-hour forex time frame. Stochastic is already moving in the oversold area but has yet to cross higher and indicate a potential return of bullish momentum.
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The US dollar sprang back to life in recent trading sessions, despite mixed data from the US economy.