Kiwi Power: Euro's Embarrassing Downfall
Introduction
The EUR/NZD currency pair represents the exchange rate between the Euro and the New Zealand Dollar. Shorting this pair implies betting on the Euro weakening relative to the New Zealand Dollar. This report outlines professional reasons to short EURNZD to target 1.75, based on recent technical and fundamental analyses.
Technical Analysis
Downtrend Indicators
Clear Downtrend on H4 Time Frame: The EURNZD chart on the H4 time frame shows a clear downtrend characterized by successive lower highs and lower lows. This pattern indicates a persistent bearish sentiment in the market
.
Bearish Momentum: The MACD line is below the signal line and in negative territory, indicating strong bearish momentum. The histogram also shows increasing bearish divergence, suggesting that the downtrend may continue
. Additionally, the RSI is at 33.55, approaching the oversold zone, which indicates potential for further declines after a short-term correction
.
Widening Bollinger Bands: The Bollinger Bands have widened, indicating increased volatility. The price is currently near the lower band, suggesting potential oversold conditions but also highlighting the strong bearish trend
.
Key Support Levels
Critical Support at 1.7748: Traders should monitor the support level at 1.7748 closely. A break below this level could signal further declines, making it a crucial point for short positions
.
Target Levels: Various analyses suggest target levels for short positions. For instance, a sell limit at 1.791-1.793 with targets at 1.758, 1.742, and 1.726 indicates a bearish outlook
. Another analysis recommends a short position with a take profit zone between 1.7340 and 1.7390, reinforcing the bearish sentiment
.
Fundamental Analysis
Economic Data
Stronger NZD: Recent economic data from New Zealand shows stronger-than-expected producer prices, with PPI Input at 0.7% and PPI Output at 0.9%, both above forecasts. This supports the New Zealand Dollar, making it more likely for the EURNZD pair to decline
.
Market Sentiment
Bearish Sentiment: The overall market sentiment for EURNZD is bearish. The presence of bearish candles and the widening Bollinger Bands indicate strong selling pressure
. Additionally, the MACD and RSI indicators support the continuation of the downtrend
.
Conclusion
Based on the technical and fundamental analyses, shorting EURNZD to target 1.75 is supported by several factors:
A clear downtrend on the H4 time frame with successive lower highs and lower lows
.
Strong bearish momentum indicated by the MACD and RSI indicators
.
Increased volatility and bearish sentiment as shown by the widening Bollinger Bands
.
Stronger-than-expected economic data from New Zealand supporting the NZD
.
Critical support levels and target zones identified by various analyses
.
These factors collectively suggest that shorting EURNZD to target 1.75 is a viable strategy, given the current market conditions and technical indicators.
The EUR/NZD currency pair represents the exchange rate between the Euro and the New Zealand Dollar. Shorting this pair implies betting on the Euro weakening relative to the New Zealand Dollar. This report outlines professional reasons to short EURNZD to target 1.75, based on recent technical and fundamental analyses.
Technical Analysis
Downtrend Indicators
Clear Downtrend on H4 Time Frame: The EURNZD chart on the H4 time frame shows a clear downtrend characterized by successive lower highs and lower lows. This pattern indicates a persistent bearish sentiment in the market
.
Bearish Momentum: The MACD line is below the signal line and in negative territory, indicating strong bearish momentum. The histogram also shows increasing bearish divergence, suggesting that the downtrend may continue
. Additionally, the RSI is at 33.55, approaching the oversold zone, which indicates potential for further declines after a short-term correction
.
Widening Bollinger Bands: The Bollinger Bands have widened, indicating increased volatility. The price is currently near the lower band, suggesting potential oversold conditions but also highlighting the strong bearish trend
.
Key Support Levels
Critical Support at 1.7748: Traders should monitor the support level at 1.7748 closely. A break below this level could signal further declines, making it a crucial point for short positions
.
Target Levels: Various analyses suggest target levels for short positions. For instance, a sell limit at 1.791-1.793 with targets at 1.758, 1.742, and 1.726 indicates a bearish outlook
. Another analysis recommends a short position with a take profit zone between 1.7340 and 1.7390, reinforcing the bearish sentiment
.
Fundamental Analysis
Economic Data
Stronger NZD: Recent economic data from New Zealand shows stronger-than-expected producer prices, with PPI Input at 0.7% and PPI Output at 0.9%, both above forecasts. This supports the New Zealand Dollar, making it more likely for the EURNZD pair to decline
.
Market Sentiment
Bearish Sentiment: The overall market sentiment for EURNZD is bearish. The presence of bearish candles and the widening Bollinger Bands indicate strong selling pressure
. Additionally, the MACD and RSI indicators support the continuation of the downtrend
.
Conclusion
Based on the technical and fundamental analyses, shorting EURNZD to target 1.75 is supported by several factors:
A clear downtrend on the H4 time frame with successive lower highs and lower lows
.
Strong bearish momentum indicated by the MACD and RSI indicators
.
Increased volatility and bearish sentiment as shown by the widening Bollinger Bands
.
Stronger-than-expected economic data from New Zealand supporting the NZD
.
Critical support levels and target zones identified by various analyses
.
These factors collectively suggest that shorting EURNZD to target 1.75 is a viable strategy, given the current market conditions and technical indicators.
Trade active
Trade closed: target reached
+800 PIPS
Disclaimer
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