EUR/NZD: Pulling Back To Shoot Towards 1.7050
Good afternoon Traders and welcome back to EverythingFX! Final day
The Euro currently trading at 1.67700 against the New Zealand Dollar during today's London session.
Looking on the weekly timeframe we have clearly formed a double bottom finding support at 1.63000 where priced reversed with a strong bullish reversal. We have since seen the continuation this week. Dropping down to a daily timeframe we can see price has finally broken our monthly resistance of 1.67000.
Dropping down to the 4-hour timeframe we can see price is creating discrete higher low swings however I do expect some sort of correction before going higher! I personally would prefer a deeper pullback in and around 1.66000 regions before going higher however we could just retest our previous resistance now support at 1.67000 before going higher. Our next level of resistance is at 1.70500 which provides a good 350 pip trade upon a pullback!
Fundamentally we had NZ Manufacturing PMI's come in at 51.9 in March vs 53.7 previously which has assisted in the upside momentum for the pair as well as EUR Industrial Production out today so stay tuned to out market news section for updates.