After slipping from 2.0300, EUR/NZD looks ready to retest key inflection points that could set the stage for another leg higher in its longer-term uptrend.
Here’s what we’re seeing on the daily time frame!
EUR/NZD Daily Forex Chart by TradingView
The euro took a few punches last week as mixed data and rising Russia-Ukraine tensions overshadowed hawkish signals from the ECB.
Meanwhile, the New Zealand dollar benefited from higher gold prices, improved risk sentiment, and possibly a recovery from its oversold conditions ahead of RBNZ’s decision this week.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the New Zealand dollar and the euro, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
How low can EUR/NZD go before buyers step back in?
EUR/NZD, which has been in an uptrend since June, recently pulled back from the 2.0300 psychological level and looks ready to test key support zones. The 2.0000 psychological handle is the one to watch, since it acted as resistance back in August.
This area now lines up with the 38.2% to 50% Fibonacci retracement of September’s upswing, the Pivot Point line, AND sits just above the ascending channel support on the daily chart!
We’re watching for green candles and steady demand above 2.0000, which could set up a move back to the 2.0300 highs or even fresh 2025 peaks.
If selling pressure continues, though, EUR/NZD could slide toward lower areas of interest like the channel support or even the 1.9700 zone before bulls make another stand.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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