EURO VS KIWI (EUR/NZD) Mid Term Trade Strategy & Plan
Updated
RBNZ Expectations Survey, which featured downgraded official cash rate and inflation estimates, the Kiwi gave a fresh bearish trigger in the Asian trading session.
Real interest rate cut for the RBNZ decision this week has been boosted by this report, so it wouldn't be shocking if London session traders were to start positioning by today.
Earlier on, the pair bounced off the support at their ascending channel and distance, but might still have some bullish momentum higher for another split. Nonetheless, a step past the top of the channel could see a limited upside at the resistance level of 1.7500
The economic schedule shows that the eurozone has ZEW Economic Sentiment figures up for release, and forecast expected good from Germany and the entire region. If it's for real then this cross-currency could fly higher, especially with risk aversion creeping in ahead of Trump’s trade speech.
Moving averages reveal that EURNZD is safely in the bullish territory in short terms. Talking about the average volatility over the past 30 days that tells pair moves around 110 pips per day.
Dip back to the channel support around 1.73313 could be a good long entry area, with a stop below the weekly S2 of pivot 1.72767 (around the previous low of Nov 4). I have a bullish bias and have a plan to enter (if we get chance) from the bottom of the ascending channel but as we can see there some levels which our arrows in the chart pointing out for potential reversal zone (PRZ) and one can jump in and out of the trade depending on how the market news which are concerned to this two currency releases and how it shifts in sentiment and price action for this cross pair throughout the remaining days of the week. Happy Trading!
Real interest rate cut for the RBNZ decision this week has been boosted by this report, so it wouldn't be shocking if London session traders were to start positioning by today.
Earlier on, the pair bounced off the support at their ascending channel and distance, but might still have some bullish momentum higher for another split. Nonetheless, a step past the top of the channel could see a limited upside at the resistance level of 1.7500
The economic schedule shows that the eurozone has ZEW Economic Sentiment figures up for release, and forecast expected good from Germany and the entire region. If it's for real then this cross-currency could fly higher, especially with risk aversion creeping in ahead of Trump’s trade speech.
Moving averages reveal that EURNZD is safely in the bullish territory in short terms. Talking about the average volatility over the past 30 days that tells pair moves around 110 pips per day.
Dip back to the channel support around 1.73313 could be a good long entry area, with a stop below the weekly S2 of pivot 1.72767 (around the previous low of Nov 4). I have a bullish bias and have a plan to enter (if we get chance) from the bottom of the ascending channel but as we can see there some levels which our arrows in the chart pointing out for potential reversal zone (PRZ) and one can jump in and out of the trade depending on how the market news which are concerned to this two currency releases and how it shifts in sentiment and price action for this cross pair throughout the remaining days of the week. Happy Trading!
Note
Germany ZEW Economic SentimentCreate Alert
Actual
-2.1
Forecast
-13.2
Note
Yowza … expectations for a cut jumped yesterday after the inflation expectations data …. nope.Reserve Bank of New Zealand holds the cash rate steady. Their next meeting is February 12 next year.
NZD has surged, dragging AUD higher with it
Author: Eamonn Sheridan
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