Market View and Analysis – EURNZD

Market View and Analysis – EURNZD

Today we will be looking at the EURNZD, the ECB slowly turns more hawkish while the Kiwi is somewhat helped by commodity prices finding a base. The RBNZ remains dovish but Italy, France or the periphery could potentially be a bigger problem for the Eurozone.

Weekly Overview

We will look at the weekly and our take away is from October 2017 we have been stuck in a range of 1.6366 to 1.7987, as we came into the middle to end of 2018, we broke the original range of 1.7418 area and really pushed higher but 1.8 held and we have run down all the way to the support zone. 

Daily Overview

The daily chart we want to focus in on the fall from 8th October 2018 to 5th December 2018 as from the weekly chart we fell from 1.793 to 1.6329 and with little pause. We have now retraced to the 50% fib and produced a large indecision spinning top. 

We fell back down with the Fibonacci levels providing good guidance with the 23.6% fib holding price at 1.6707 on Wednesday the 16th January, the ensuing bullish engulfing took us up to the 38.2% fib (1.6941) where only in a very minor up trend we could conclude a Tweezers pattern occurred, it consists of two candlesticks with more or less the same high or a same low or some variation thereof. We had nearly perfect Highs and lows, and then we have fallen in recent days back to support of 1.6707.

The determination we have to make is we made a lower high but support of the 23.6% fib is holding and preventing for the time being the lower low. 

4 Hour Overview

So, as we run into the weekend we feel support in the near term may hold, so the 1.67 area can stay intact we could see a move above 1.6740 area, which is minor resistance, back up to 1.681 area. 

Trade Idea

We will be looking for a Buy trade on the EURNZD

We will be looking for a short term trade off the 4 Hour chart.

We will buy a break of minor resistance.

We will have an appropriate trade size for our account.

We will look for a buy trade above 1.6740

The trade will be invalidated below 1.67

Our stop loss will be 30 pips from entry.

Our target will be the 1.68 area. 

Happy Trading

Trade Update AUDJPY Sell Trade 24th January 19

Looking at the 1 hour chart to see what happened we had one push below 77.61 and got 10 pips into profit, but this happened very late last night so the trad was not triggered. Price on the 4 hour chart is still in the sideways movement and until we see a break we will not have a trade. 

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Tags: EURNZD

About Author

Simon Cotterill

After a long break to revamp the company and provide a new offering we have launched our new website and products! Please check out http://www.sctrading.co.uk Follow me on Twitter as I am going to be posting some reports and trades: https://twitter.com/SimonCTrader The new website will launch at www.sctrading.co.uk To subscribe to our New Daily Trade Reports for a free 7-day trail, please visit www.sctrading.co.uk/subscribe If you have any questions, please contact us on info@sctrading.co.uk and one of our team will get back to you.