WHY EURNZD IS BULLISH AGAING ?? DETAILED ANALYSISEUR/NZD is currently trading at approximately 1.886, having completed a retesting phase following a bullish breakout. This technical development suggests the potential for a renewed upward movement toward the target price of 1.9300. With strong bullish momentum building, traders are closely watching for confirmation signals to enter long positions.
Fundamentally, the Reserve Bank of New Zealand (RBNZ) recently implemented a 50 basis point rate cut, reducing the benchmark rate to 3.75%, with indications of further easing to stimulate the economy. This dovish monetary policy stance tends to exert downward pressure on the New Zealand dollar, thereby supporting the EUR/NZD pair. Meanwhile, the Eurozone has maintained a more stable monetary policy, contributing to euro strength relative to the New Zealand dollar. This divergence in central bank policies enhances the bullish outlook for EUR/NZD.
Technical indicators further reinforce this perspective. The pair has been in a downward channel since mid-February; however, recent bullish candles indicate a potential short-term reversal or correction. The price has swiftly moved from the lower Bollinger Band to the upper band, breaking through the middle band in a strong bullish move. Additionally, EUR/NZD is currently testing the 50% Fibonacci retracement level, a key decision point for traders.
Considering these technical and fundamental factors, the EUR/NZD pair appears poised for a bullish wave toward the 1.9300 target. Traders should monitor key resistance levels and employ appropriate risk management strategies to capitalize on this potential upward movement. If momentum continues, this setup could present a profitable long trade opportunity in the coming sessions.
