EUR/NZD: Are we gearing up for 1.74000?
GoodafternoonTraders and welcome back to EverythingFX, writing to you from our London Mayfair HQ.
The Euro currently trading at 1.72429 against the New Zealand Dollar during today's London session.
Starting on the higher timeframes we can see the price has been rallying for the past few months. On the monthly timeframe, we are very bullish, we have a bullish engulfing off the lows in and around 1.63500 and have rallied since! One a weekly timeframe we had a massive bullish engulfing taking out the past 4 trading weeks all in one go!
Dropping to a 4-hour we can see price bounced off 1.71500 fairly nicely as it was previous resistance and once broken through turned into support, where we saw price launch up over 100 pips to around 1.72250 where have seen a small retracement off of that level. I personally would like to see a smaller pullback before having a drive straight up to our next level of resistance at 1.74000 providing us with a great risk to reward upon a pullback giving us a good 220 PIP trade. What would invalidate the bias right now is a daily break back below 1.71500.
Fundamentally we have Eurozone CPI's which would be the only negative factor on this setup, however, later in the week, we have NZD GDP which will be interesting to see how they are doing after a rate cut they had several months ago! Do stay tuned to our market news section and social media for rapid updates!