EUR/NZD: Euro Kiwi Has Left The Station!!!
Good afternoon traders and welcome back to EverythingFX, I'm writing to you from a surprisingly sunny London morning!!!
Euro currently trading at 1.65185 against the New Zealand Dollar during today's London session.
As discussed in my previous article I clearly stated that "we were trapped in a consolidation just under our monthly key-level of 1.67000 while patiently awaiting the ECB interest rate decision as all we needed a catalyst to break out."
Looking at the daily candle which closed last night at 10pm GMT we had a massive bearish engulfing, taking out 5 prior days of price action which was also a break of consolidation which is illustrated on the 4-hour timeframe which is in the screenshot above. We have had a fairly good continuation this morning as we are currently down 0.34% on the day.
On the 4-hour timeframe, we formed a shooting star bearish engulfing break of our ascending counter trendline, I do see the price going on to create new lows in around the 1.63000 regions over the next couple of trading days which can be obtained if take out our minor daily support at 1.64150. What would invalidate this setup for myself is a break of our resistance at 1.67000.
Fundamentally we have the ECB who have officially announced that they will be introducing the TLTRO program in Septemeber, but traders are keeping an eye out in June where they will discuss the terms and conditions.