The Euro has struggled recently to trade higher against most of its counterparts, including the New Zealand dollar. On the other hand, the New Zealand dollar has been one of the strongest currencies recently. So, the downside pressure on the EURNZD pair has increased lately. The EURNZD pair recently traded lower back towards the last low of 1.5540. Now, it might correct a bit higher from the current levels, which can be seen as a selling opportunity in the short term.
There are several resistances on the way up for the pair at around the 1.5600-20 levels. The 200 moving average on the hourly timeframe is also around the same levels. So, if the pair trades higher from the current levels, gets closer to the mentioned resistance level and forms a bearish divergence, then we can jump into a sell trade. Remember, do not rush into a trade and wait for the right time to enter into a trade.
Initial target should be around the 1.5480 level, and final target could be around the 1.5350 level. Stop should be above the 1.5680 level.
Reviewing yesterday’s events and trades
Yesterday, there were a lot of important economic releases scheduled in the US. The most important one was the US GDP data. The outcome was very disappointing, as the US GDP declined by 2.9% in the first quarter of 2014, missing the expectation of a 1.7% decline. Moreover, the US durable goods orders also registered a 1% decline. This weighed on the US dollar, as it traded lower against most of the major currencies. The EURUSD pair traded close to the 1.3650, and the NZDUSD pair traded above the 0.8750 level.
Fundamental Outlook for the day
Today, during the NY session, the US initial jobless claims and personal spending data will be published. The market is expecting a good jobless claims reading this time. If the outcome again misses the forecast, then it might weigh further on the US dollar. Moreover, during the next Asian session, the New Zealand’s imports, exports and trade balance data will be released, which could impact the New Zealand dollar in the short term. The Japan’s inflation data will also be published, which could ignite swing moves in the yen pairs.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: GBPNZD, USDCAD, USDJPY, EURJPY and EURCHF.
Get it HERE: Vladimir’s Markets Forecast
Trade well friends. Happy trading!
