EUR/NZD: Are we lining up for a new leg?
Good afternoon Traders, welcome back to EverythingFX on this bright London afternoon.
The Euro is currently trading at 1.68114 against the New-Zealand Dollar during today's London session.
The psychological level of 1.69000 has finally been tapped as explained on our Technical Floor which has already fallen 90 PIPs from the rejection.
Taking a look at the monthly timeframe as we have just recently had a fairly indecision candle throwing wicks to both the upside and the downside. On the weekly timeframe, we have had a fairly big wick to the upside which was the drive on yesterday's Daily candle where if we flip over to the Daily timeframe, we have since seen that follow-through off of the highs.
Dropping down to a 4-hour timeframe we have since seen a nice bearish rejection off the highs as well as several doji's representing indecision at a level of resistance. I personally do favour a new leg to the downside on this pair with several levels of support at 1.67000 as well as medium swing target at 1.63500 providing us with a good 460 pips from current trading price. I would, however, wait for a potential re-test of being getting in if you missed the first entry. What would invalidate my bias on this pair right now would be daily candlestick closure above our level of 1.69000 which would need some re-evaluation.
Fundamentally, we know that the Eurozone is slowing down and we are currently patiently awaiting a move from the ECB. Do stay tuned to our Market News section and our Social Media Accounts for further updates.