EUR/NZD Targeting Resistance- Monthly Range Break to Validate Outlook

Talking Points

  • EURNZD contrast initial resistance- Well-defined monthly opening operation in view
  • Updated targets cancellation levels
  • Looking for some-more trade ideas? Review DailyFX’s 2017 Trading Guides. Join Michael for Live Weekly Trading Webinars on Mondays at 13:30GMT (8:30ET)


EURNZD Daily Chart

Technical Outlook:EURNZD incited from slope support fluctuating off a Sep low progressing this month on building divergence, changeable a concentration aloft in a pair. This new pullback has rebounded off pivotal near-term support and if we tighten during these levels, would constituted an outside-day reversal- bullish. Keep in mind that we’ve simply set an design monthly opening-range eventually a crack above a Jan annulment day tighten during 1.4876 is indispensable to countenance a broader annulment higher.

EUR/NZD 120min

EURNZD 120min Chart

Notes:A closer demeanour during cost movement has a span trade within a proportions of a well-defined descending pitchfork arrangement fluctuating off a Jan / Feb lows. Note a clever response to pivotal connection support yesterday during 1.4660 where a 61.8% retracement of a allege converged on a reduce median-line together and former channel resistance.

The miscarry is now resting insurgency during 1.4784 and while we’re expected to get some pull-back from here, a concentration stays aloft while above a reduce together / Dec low during 1.4692. A topside crack targets a weekly operation highs during 1.4827 a median-line / 1.4876. Subsequent insurgency objectives during 1.4908, 1.4953 1.4996-1.5002.

A entertain of a daily normal loyal operation (ATR) yields distinction targets of 30-33 pips per scalp. Added counsel is fitting streamer into a recover of a 4Q New Zealand sell sales information currently with a imitation expected to fuel increasing sensitivity in a Kiwi crosses. From a trade standpoint we would be looking for a pullback here to offer long-entries while in this arrangement with a crack above a median-line (uptrend resistance) indispensable to advise a some-more poignant low is in place.

Relevant Data Releases

EUR/NZD Targeting Resistance- Monthly Range Break to Validate Outlook

Other Setups in Play:

  • AUD/USD Eyeing Topside Targets Ahead of Aussie Jobs Report
  • USD/JPY Clears Monthly Range, Trendline Resistance Ahead of U.S. CPI
  • EUR/GBP Approaching Key Support Targets – 8400 in Focus Ahead UK CPI
  • Weekly Strategy Webinar: USD Rebound Hinges on Yellen Testimony

—Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForex hit him during or Click Here to be combined to his email placement list.

About author

Cheaper flights could be on the way

Flight Centre has lost its price fixing appeal in the High Court. FLIGHT Centre has been caught out blocking Australians from accessing cheap fares directly ...