EUR/NZD Into Resistance- Pullback to Offer Entries
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Talking Points
EUR/NZD pullback off key resistance to be viewed as opportunity
Updated targets & invalidation levels
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EURNZD Daily
Technical Outlook: EURNZD rebounded off confluence support earlier this week at 1.5122 where the 38.2% retracement of the 2017 range converges on down-slope support. The rally is now testing initial resistance at the trendline extending off the yearly high. The broader focus for the pair remains weighted to the topside while above the 1.50-handle (bullish invalidation) with a breach here once again targeting key resistance at 1.5451/84.
EURNZD 240min
Notes: A closer look at price action highlights near-term confluence resistance at 1.5290. Look for a reaction here with the immediate long-side vulnerable below this mark. Interim support now at the monthly open / low-day close at 1.5180/99 – area of interest for exhaustion / long-entries.
A breach higher eyes subsequent resistance objectives at 1.5336, the 1.54-handle & 1.5451/83. A quarter of the daily average true range (ATR) yields profit targets of 24-28 pips per scalp. Added caution is warranted heading into the New Zealand Consumer Price Index (CPI) tonight with the release likely to fuel increased volatility in the Kiwi crosses.
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Relevant Data Releases
Other Setups in Play:
GBP/AUD Range Break to Determine Next Leg- Constructive Above 1.62
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- Written by Michael Boutros, Currency Strategist with DailyFX
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