EUR/NZD: Setting its Eyes on 1.69500
Good morning Traders welcome and back to EverythingFX. Lucky for us, EUR/NZD Is bringing some fire to the table.
Starting on the weekly timeframe we can see the price has driven itself into an all-important resistance at 1.71500 where have seen a slow down in momentum. Dropping down to the daily timeframe we have seen some bearish momentum off the highs where we could see a further follow through to the downside as explained on our Technical Floor which is already 120 PIPs in profit.
Dropping down to the 4-hour timeframe we can see price action trending to the downside creating significant lower high swings printing one now at 1.71000. I do expect further downside from here with our next level of daily support at 1.69500, a good intraday opportunity of 120 PIPs. What would invalidate this trade setup right is a break back above 1.71500.
Fundamentally we had European inflation coming out this morning at 1.2% vs a consensus of 1.3% so there is a continued slowdown in the eurozone which will assist in this bias. With several other data points out for the eurozone later this week stay tuned to our Market news section and twitter feed for updates.