EUR/NZD: Rolls off the cliff with targets firmly set at 1.6350
Good afternoon traders and welcome back to EverythingFX.
The Euro is currently trading at 1.65502 against the New Zealand Dollar during today's London session!
Seeing as it is the start of the new week it is only right for us to take a look at the weekly candlestick closure. With a strong candlestick closure back below 1.67000 as anticipated on our Technical Floor where our members are currently securing their positions with a good 130 PIPs in the bag.
Dropping to a 4-hour timeframe we can see the price has literally been sliding, with little to no pullback what so ever on this pair all we can see if discrete lower swing highs being created on a lower timeframe, I do expect further downside on this pair with our next level of support patiently awaiting a visit from price action at 1.63500. What would be the perfect play would be a re-test of 1.67000 which was previously a good level of support so evidently a re-test of that affirming to us that it has turned into resistance would provide traders with a good risk to reward to the downside! What would invalidate this for me is now is a daily candlestick closure above 1.67000 which would require further re-evaluation.
Fundamentally, Wednesday seems to be the busiest one for the pair, We have Manufacturing and Services PMI's coming out in the London session for the Eurozone as well as the Trade Balance out in New Zealand later that evening which has been promising of late due to a post-RBNZ rate cut. Do stay tuned to our market news section as well as our Social Media accounts for further updates.