EUR/NZD: Shooting Up By 200 PIPs!!!
Hey Traders and welcome back to EverythingFX, I'm writing to you from a cold and rainy London afternoon.
Just taking a look at the weekly timeframe we can see price printed a double bottom forming a bullish rejection off of 1.63500 and we have been rallying since. Dropping down to the daily timeframe we can see price has pierced straight through our weekly resistance at 1.70500 off the back of the RBNZ cutting interest rates early hours this morning!
Dropping down to a 4-hour timeframe we can see as the news came out price spiked up to around 1.71500 and retraced about 70% of the move which was definitely an Algorithm spike. The RBNZ has since commented saying this isn't the last of it and they have kept further cuts on the cards if need be. So what does that mean for this pair? We could be looking at a lot higher prices going forward. Upon a break of our weekly resistance, we could look to target our next monthly resistance of 1.74000.
We do have ECB Draghi coming out to speak later today so we will be looking out for comments on TLTRO as he previously mentioned data will start to improve towards the end of the year so stay tuned to our Market news section for updates.