Is EUR/NZD in for a serious pattern reversal quickly?
I’m seeing a head and shoulders sample on the 4-hour chart, with worth presently testing the neckline assist.
Higher not miss a possible breakdown if it occurs!
EUR/NZD 4-hour Foreign exchange Chart by TradingView
Dovish ECB rhetoric has been dragging the shared foreign money decrease towards most of its counterparts over the previous few weeks, bringing EUR/NZD down to check its head and shoulders neckline assist.
Nonetheless, threat aversion stemming from the Russia-Ukraine battle has additionally saved the higher-yielding Kiwi’s positive factors in examine.
Can the upcoming eurozone PMI releases flip the highlight again to financial catalysts?
Do not forget that directional biases and volatility circumstances in market worth are usually pushed by fundamentals. For those who haven’t but carried out your homework on the euro and New Zealand greenback, then it’s time to take a look at the financial calendar and keep up to date on each day elementary information!
Expectations are for slight enhancements within the area’s manufacturing and providers sector, however downbeat outcomes might spotlight the opportunity of one other ECB charge lower subsequent month.
If that’s the case, look out for a break under the neckline assist at S1 (1.7860) and a doable selloff that’s the identical peak because the chart sample, which spans roughly 300 pips.
If assist retains holding, however, EUR/NZD might set its sights again on near-term resistance zones, together with the realm of curiosity at R1 (1.8050) then R2 (1.8130).
Observe that the 100 SMA is above the 200 SMA for now to mirror bullish strain however that the hole between the symptoms is narrowing to trace at a possible bearish crossover.
As at all times, be careful for different top-tier catalysts that might affect general market sentiment, and be sure you apply correct place sizing when taking any trades!
