Fundamental & Technical Outlook: EUR/NZD

Fundamental Outlook (EUR/NZD)

There was no tier one data out during London. The USD is basically flat for the day after starting the session softer. The EUR has seen pressure across the board, as the GBP strengthens in this thin August market. The NZD continues to be supported following yesterday's hawkish comments from RBNZ's Wheeler.

Coming up we have US Existing Home Sales and EIA Inventories on tap for the New York Session.

In today’s session, we expect the strongest currency to remain the NZD due to the RBNZ surprise suggesting the RBNZ could remain on hold for longer. This will also make the NZD more attractive as a carry. If equities can remain positive, that would also be supportive of the kiwi

The weakest currency is expected to be EUR as negative sentiment continues to weigh on the single currency.

The EURNZD pair is currently priced at 1.5412.

There are several levels including the current price level which can be considered for selling opportunities:

The price levels below could be used to sell from as price retraces into them:

1.5450, 1.5470, 1.5485

The price level above that could be used to sell as price breaks:

1.5384

Source: Jarratt Davis

Technical Outlook (EUR/NZD) Daily Chart)



Indicators: Bearish (50 sma below 200 sma)

Summary: The price has recently broken down previous support turn resistance zone, and currently I am expecting it to move towards the support zone due to the bearish sentiment surrounding this pair.