The Euro is trading lower against the US dollar, but is trading a touch higher against the New Zealand dollar. The EURNZD pair has managed to clear an important resistance area, which means that the pair might continue trading higher in the coming sessions. So, buying dips looks like a good option in the short term, in my opinion.
There was a wedge created on the 4 hour chart for the EURNZD pair. The pair has breached the same and settled above it. Now, if the pair trades a bit lower from the current levels or corrects lower and forms a bullish divergence, then we can jump into a buy trade. Basically, as long as the pair stays above the 1.5460-50 broken resistance zone we should look for buying opportunities.
Initial target should be around the 1.5640 level, and final target could be around the 1.5720 level. Stop should be below the 1.5440 level.
Reviewing yesterday’s events and trades
Yesterday, the US dollar most consolidated the recent gains, but the overall trend favors more gains in the coming days. The EURUSD continued its slide yesterday, and traded close to the 1.3520 support level. The US PPI data was released during yesterday’s NY session, which came better than expected and helped the US dollar further. The pairs like GBPUSD and AUDUSD are trying to recover the lost ground, and trading a touch higher today.
Fundamental Outlook for the day
Today, the US building permits data, housing starts data, initial jobless claims and the Philadelphia manufacturing index will be released during the NY session. All these events have a potential to cause swing moves in the US dollar. There is a chance that the US dollar might correct and retrace recent gains in the short term. It would be interesting to see how the pairs like EURUSD and NZDUSD react to the incoming data later today.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURGBP, GBPUSD, USDJPY, AUDUSD, GBPNZD and EURJPY.
Get it HERE: Vladimir’s Markets Forecast
Trade safe friends. Happy trading!