EUR/NZD Near Resistance: Pullback Expected!!
Updated
Fundametnal Analysis:
EURNZD New Zealand's higher interest rate of 5.5% is likely to attract more foreign investment compared to the Euro Area's 4.25%. Additionally, New Zealand's lower unemployment rate of 4.3% indicates a stronger labor market compared to the Euro Area's 6.4%. While the Euro Area benefits from a substantial trade surplus (EUR 13,888 million), New Zealand's positive trade balance (NZD 204 million) combined with higher interest rates and lower unemployment provide significant support for the NZD. Despite both regions facing economic challenges such as contracting manufacturing sectors and negative consumer confidence, the overall strength of the NZD is reinforced by these favorable economic conditions.
Technical Analysis:
EURNZD pair is currently trading around 1.81500, close to the resistance level marked by the Previous Month High (PMH). The recent bullish trend has propelled the price from approximately 1.76232 to its current level. If the price fails to break above the resistance at 1.81126, a pullback is likely, with potential support at 1.79373 (TP1) and 1.78335 (TP2). A further decline could see the pair testing the lower support at 1.76232 (PML). Conversely, a sustained break above 1.81500 would indicate continued bullish strength. Traders should watch for reversal signals near the resistance level to identify potential short opportunities targeting the support levels.
Targets: 1.79373, 1.78335
https://www.tradingview.com/x/3ihJozdE/
EURNZD New Zealand's higher interest rate of 5.5% is likely to attract more foreign investment compared to the Euro Area's 4.25%. Additionally, New Zealand's lower unemployment rate of 4.3% indicates a stronger labor market compared to the Euro Area's 6.4%. While the Euro Area benefits from a substantial trade surplus (EUR 13,888 million), New Zealand's positive trade balance (NZD 204 million) combined with higher interest rates and lower unemployment provide significant support for the NZD. Despite both regions facing economic challenges such as contracting manufacturing sectors and negative consumer confidence, the overall strength of the NZD is reinforced by these favorable economic conditions.Technical Analysis:
EURNZD pair is currently trading around 1.81500, close to the resistance level marked by the Previous Month High (PMH). The recent bullish trend has propelled the price from approximately 1.76232 to its current level. If the price fails to break above the resistance at 1.81126, a pullback is likely, with potential support at 1.79373 (TP1) and 1.78335 (TP2). A further decline could see the pair testing the lower support at 1.76232 (PML). Conversely, a sustained break above 1.81500 would indicate continued bullish strength. Traders should watch for reversal signals near the resistance level to identify potential short opportunities targeting the support levels.Targets: 1.79373, 1.78335
https://www.tradingview.com/x/3ihJozdE/
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Note
Hey traders, π’ if you're looking to take some swing positions, here's a quick update. The Volatility Index (VIX) is spiking, currently at 18.58 π, indicating a potential increase in market volatility. This makes traditional support and resistance levels less reliable, so I'd recommend using small stop-losses and trying to hedge your positions. With stocks trending downward π, there's a strong chance the DXY (Dollar Index) could push up soon π΅. Be cautious and stay sharp out thereβthese are turbulent times! β οΈ
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