Looking at the chart on the weekly time frame, we see that the EUR/NZD pair is still continuing in the bearish trend. A break below the moving averages of the MA200 and EMA200 only intensified the euro’s pressure for the EUR/NZD pair to continue towards lower levels. NZD, as a smaller currency, very skillfully uses its global position in the market, because as a secondary currency, it has less pressure on a global level.
This is also influenced by the number of newly infected with coronavirus and now by the population’s speed of vaccination. European countries have a problem with the quantities of vaccines that are currently insufficient for current needs in order for vaccination to be carried out smoothly.
Based on these global developments and the rapid adjustment of the NZD, we can expect the pair to continue to descend to 1.65000 as psychological support for the euro and the opportunity to take a short break there.
On the daily time frame, we see that the pair fails to stay above 1.68000, but on the contrary, it becomes our resistance, and we see that after that, the pair goes down looking for better support. Following the moving averages, we see that the MA20 and EMA20 are quite good resistance and an indicator for continuing the bearish trend, directing the pair towards 1.65000.
For the bullish scenario, we first need a break above MA20 and EMA20 and a corresponding consolidation above 1.68500, giving us the signs on the chart for a potential trend reversal or short-term bullish option.
On the four-hour time frame, we see that the pair is strictly in a bearish trend with high resistance with moving average MA200 and EMA200, while MA20 and EMA20 oscillate around the chart’s values for now and are not a sure indicator of trend direction.
We can also use Fibonacci retracement levels, and they tell us that the EUR/NZD pair failed to pass 50.0% to 1.68350, nor to reach 61.8% level.
Based on that, we can expect the continuation of the bearish trend because the couple does not have the strength to turn around and start in the bullish trend.
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