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Tues 9th May 2023 : Daily Currency Strength Analysis

Today we’re looking at Trading Setups in:

• EURNZD (Primary Focus Pair)

Primary Focus Pair: Overview

EURNZD

NZD remains top of our forex strength Vs Weakness tables today as the strongest currency, and is paired at the top with EUR as the weakest. 

This could provide us with a trading opportunity to sell EURNZD if price is at a place to do so. 

EURNZD has recently broken out of a key level of resistance at 1.7500. 

Price rallied above these highs and found resistance at 1.8050. 

Since then, NZD strength has driven prices lower, with price breaking back below the key 1.7500 resistance.

This tells us that momentum is with the sellers and that price could trade even lower.

On the H4 chart price is forming a minor consolidation, showing a lack of buying intent.

If  price breaks through the lows of this consolidation, we could see price move towards the next level of support at the 1.7225 zone, which formed on April 5th this year. 

Sellers could look to target these lows in the near term. 

Alternatively, traders could watch for price to return back to 1.7500 (now resistance) and look for a rejection for a short trading opportunity, if EURNZD remained on the tables.

Technical Observations:

• EUR is W1 and NZD is S1 on the day traders tables.
• Price has traded back below the key resistance of 1.7500.
• If the price is going to trade lower it could reach the support of 1.7225.
• The H4 chart shows a consolidation pattern forming which could cause a break lower.

Todays 9am (BST) Forex Strength Vs Weakness Tables: