EUR/NZD: Eyeing up 1.6700
Hello Traders and welcome back to EverythingFX.
The Euro is currently trading at 1.70070 against the New Zealand Dollar during today's London session.
Starting on the higher timeframes we can see we have pushed up into an all-important area of resistance for the pair. Looking on the weekly timeframe we can see price is currently rejecting off of this region after spiking up to 1.73000. Dropping down to a daily timeframe we have had a spike into a round psychological key level of 1.72000 rejecting off that fairly bearishly with a nice daily close below 1.70500.
Dropping down to a 4-hour timeframe we can see price is currently slowing down where I do favour a pullback to re-test the highlighted region as displayed on the screenshot above. Upon a re-test of 1.71000, I do expect some form of bearish reversal to then provide one with a good entry with a great risk to reward to the downside with two levels of support I am targeting, first we have a minor daily level of 1.69150 and secondly we have 1.67000, providing us with a good 415 PIPs to the downside as an overall swing projection.
Fundamentally we have the interest rate in New Zealand remaining the same however the economy is starting to find its feet again after the rate cut several weeks ago! In the Eurozone, we had consumer confidence and business climate disappointing investors with a fairly dovish outlook going forward. Stay tuned to our market news as well as our social media for further updates!