EUR/NZD forecast for December 30, 2020
Looking at the chart on the weekly time frame, we see a continuation of the bearish trend with less consolidation of the previous two weeks. We are looking at whether the EUR/NZD pair will manage to stay above the moving average of the MA200 at 1.69700; the withdrawal was from the previous MA100 with 1.72700. The continuation of the Bearish scenario is very likely.
On the daily chart, we see a side consolidation with a previous rejection from 1.70000 to 1.73000. We can probably expect this kind of consolidation by mid-January when the New Year holidays are over, and the market returns to normal. It is important to us if we see below the support at 1.70000 to buy up to 1.73000, and if we see a break below, it can be a signal for us to sell up to 1.68000 and maybe lower. On the upper side, for now, we have a good moving average MA50 (red line).
On the four-hour time frame, we see a drop from 1.73500; there is a probability that the EUR/NZD pair will soon test the down zone again to 1.70000. The pair is under pressure from above with moving averages, and based on that, we can expect a continuation of lower levels and below 1.70000. Investors remained optimistic about the likelihood of additional financial assistance and a strong global economic recovery in 2021.
The global risk mood was further boosted after British regulators approved the use of the AstraZeneca / Oxford coronavirus vaccine, giving strength to smaller currencies such as NZD, AUD, and CAD. The head of the German Institute, Robert Koch, noticed that the coronavirus is still spread in all populations and age groups, and the Minister of Health, Jens Spahn, said that he did not see that they could return to normal under the current conditions. This can further affect the euro by putting it in the background against smaller currencies.
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