I wrote a post about the EUR/NZD last week before it broke up and out above a daily chart bear trend line. The rally has continued here and, with the bearish bias from today’s RBNZ and recent EUR strength, this recovery may have more room to move.
EUR/NZD monthly: The bigger picture here is the bullish descending wedge where price action has now made a third bounce up off trend line support. Thus, I’m more interested in looking for bullish opportunities than bearish ones, despite the overall down-trend:
EUR/NZD weekly: I noted in my w/e analysis how this pair had printed a weekly bullish engulfing candle and bullish action has continued since then:
EUR/NZD daily: Price action has made a bullish breakout above trend line resistance. The 61.8% fib retracement of this recent swing low move is near 1.50, a nice, psychological whole-number level and this is also just above the top edge of the daily Cloud. This fib is also just under the daily chart’s 200 EMA. Thus, the 1.50 level may be a suitable target for any bullish continuation move:
EUR/NZD 4hr: Sadly for me, I missed seeing a new TC signal here as it came off my 11 pm candle. This signal formed when price made a new 4hr close back above the 4hr 200 EMA and has already delivered over 250 pips:
EUR/NZD 30 min: This chart shows how price action got moving mostly during the late-Europe and US trading sessions:
Summary: The EUR/NZD continues to look bullish from a technical perspective and current fundamentals are helping to support this bias. I missed seeing a new 4hr TC signal due to time zone issues but I do see potential for this pair to continue through to the 1.50 region and so will look for other opportunities to enter here.
NB: GBP/NZD: I reviewed this pair in my w/e analysis as well and will update this analysis later.
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