- Posted By: james w
- Category: Market News
NZD Strengthens as EURNZD Faces Key Support Amid Eurozone Data
The EURNZD (Euro/New Zealand Dollar) forex pair, commonly known as the Kiwi-Euro, represents the exchange rate between the Euro (EUR) and New Zealand Dollar (NZD), influenced by economic policies and macroeconomic indicators from both the Eurozone and New Zealand. Today, key Eurozone data releases, including Consumer Spending, GDP Estimates, Import Price Index, and CPI, will provide insight into inflation and economic growth, impacting the EUR’s strength. Higher-than-expected figures could support a bullish outlook for the Euro, while weaker numbers may push the pair lower. Meanwhile, New Zealand’s Trade Balance Report and ANZ Business Confidence Index will be crucial in determining the NZD’s demand. A positive trade surplus and improved business sentiment could strengthen the NZD, leading to a bearish move in EUR/NZD. Given the significance of Eurozone inflation and employment data, coupled with market expectations regarding future ECB policy adjustments, traders should anticipate increased volatility in EUR NZD price action throughout the trading session.
Chart Notes:
• Chart time-zone is UTC (+02:00)
• Candles’ time-frame is 4h.
The H4 EURNZD chart reveals a bearish price action despite the pair trading above the Ichimoku Cloud, signaling a potential continuation of the downtrend in the short term. The Kiwi-Euro price is currently retracing from the 0.786 Fibonacci level, indicating a rejection of higher levels. It is now approaching the 0.618 Fibonacci retracement zone, which could act as a strong support level. Additionally, a descending triangle pattern is forming, with lower highs and a flat support zone, suggesting a potential breakdown if price breaches the support area. The RSI indicator is hovering near the 50 level, showing a neutral-to-slightly-bearish momentum. If the RSI dips below 50, it could confirm further bearish pressure. However, if buyers step in at the 0.618 Fib level, we might see a bullish rebound towards 1.8460 (previous resistance).
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.