Mon 21st November 2022

Today, Our Daily Currency Strength Weakness Video will focus on:

  • EURNZD

Charts Provided by Charles Clifton

Daily Analysis By Jon Kibbler

EURNZD- Breakout Trading Opportunity

In today’s currency strength video we identified that NZD is S1 on the trend trader tables and the EUR is W3 on the both tables.

In the news this week the RBNZ is forecasted to hike interest rates by 75 bps this week bringing their rates to 4.25%. This is in an effort to bring Core Inflation lower as it remains high at 6.2%.

This hawkish outlook from the central bank may remains if in the statement after the RBNZ outline further aggressive highs.

The EUR has appeared as weak on the tables which could offer us short trading opportunities on EURNZD.

Technical Observations

  • The NZD is S1 on the trend tables and the EUR is W3 on the both tables.
  • The EURNZD pair is in a trading range confirmed by the sideways 200MA.
  • Price recently traded and rejected the September 2020 lows at 1.7500.
  • On the daily chart we can see the price is trading between 1.7025 and 1.6750. 
  • A breakout of the low at 1.6750 will offer day traders the opportunity to trade to 1.6500. 
  • Trend trader may want to wait for the price to test the 1.6750 and the trendline resistance. 

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