EUR/NZD: Euro Kiwi Ready To Take Another Plunge
Goodmorning Traders and welcome back to EverythingFX.
Euro currently trading at 1.65172 against the New Zealand Dollar at the start of today's London session.
Where to next? Starting on the daily timeframe we had a nice bearish engulfing off of our resistance at 1.67000. We saw a nice decline on the Euro once we broke the ascending trendline we sold ourselves straight into that minor daily key-level of 1.64150 as discussed in my previous article.
Looking at the 4-hour timeframe we have popped up 100 PIPs from our support. I am however expecting a steeper retracement into the 1.66000 region before taking this lower, this would give us a good risk to reward setup for the downside. What would invalidate this setup for myself would be if price broke above our resistance at 1.67000 which would require one to evaluate where we heading next! Provided the setup plays out we looking at a 300 PIP trade if we target our next level of support at 1.63000. From a higher timeframe perspective, I do expect to see 1.60000 going forward.
We do have ECB Coeure speaking later today at 17:00 GMT so do keep a lookout for any comments regarding QE (TLTRO).