Technical Overview:
On the 4H timeframe, EURNZD appears to be breaking out of a descending trendline that has been intact since early April. The pair formed a higher low around the 1.8984 level, suggesting early signs of a bullish reversal. Price is currently trading near 1.9212 after breaking the trendline and retesting it as support. If momentum holds, potential targets lie around 1.9745 and 2.0000, with a stop loss below 1.9152.
Fundamental View:
Fundamentally, the euro remains supported by expectations of steady or possibly tighter monetary policy from the ECB, especially if inflation pressures persist. In contrast, the New Zealand dollar continues to weaken due to signs of economic slowdown and a more neutral stance from the RBNZ. This divergence in monetary policy outlooks favors further upside in EURNZD.
Extra Note:
Keep an eye on a clean 4H candle close above 1.9220 with strong bullish momentum. High volume accompanying the breakout would further confirm the bullish scenario.
On the 4H timeframe, EURNZD appears to be breaking out of a descending trendline that has been intact since early April. The pair formed a higher low around the 1.8984 level, suggesting early signs of a bullish reversal. Price is currently trading near 1.9212 after breaking the trendline and retesting it as support. If momentum holds, potential targets lie around 1.9745 and 2.0000, with a stop loss below 1.9152.
Fundamental View:
Fundamentally, the euro remains supported by expectations of steady or possibly tighter monetary policy from the ECB, especially if inflation pressures persist. In contrast, the New Zealand dollar continues to weaken due to signs of economic slowdown and a more neutral stance from the RBNZ. This divergence in monetary policy outlooks favors further upside in EURNZD.
Extra Note:
Keep an eye on a clean 4H candle close above 1.9220 with strong bullish momentum. High volume accompanying the breakout would further confirm the bullish scenario.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.