Exchange rate of the currency pair: EUR/NZD Spot
After the statements by ECB President Mario Draghi on the outlook of the economy and inflation in the eurozone, a future moving away of the Central Bank from its extremely relaxed monetary policy is not far off now. This caused the euro to rise, which is recording at its yearly high today. In many EUR pairs, there was a sharp lurch, which – especially in the EURNZD – is now leading to a continuation of the trend. In this technical analysis, we will expand on a possible continuation of the euro rally in the Forex pair EURNZD.
Initial spark in the daily chart
In the daily chart, the significant upward trend is clear to see. A deep correction provided a more attractive entry ratio up until the first target at 1.62000. The green Draghi candle from yesterday can be clearly seen, representing the initial spark in the trend direction in the chart. In the subordinate chart, we are now waiting for a setback in the signal trend.
Trend formation in the hour?
Currently, the prices have just rocketed upwards. This can be clearly seen in the subordinate hourly chart. For an entry, however, we must wait for the formation of a trend, as has been drawn in. This is why we would want a light correction, to then be able to enter at the P2 of the signal trend or from out of the subsequent correction at the signal level. The stop placement takes place at the last respective low according to trend trading.
Initial partial sales should be made at the high of the superior trend at 1.62000. Before making an entry, one should take news into account. In addition, one should also observe the overall market as well as the actions of the central banks.
Possible trading parameters
Entry: depending on the formation of the hourly trend, between 1.54500 – 1.58000
Stop: depending on the formation of the hourly trend, at the last low
Target: 1.62000, 1.68500, 1.78000
Neither the author nor our company is invested in the securities and underlyings discussed at the time of publishing this analysis.
Exchange transactions are associated with significant risks. Those who trade on the financial and commodity markets must familiarize themselves with these risks. Possible analyses, techniques and methods presented here are not an invitation to trade on the financial and commodity markets. They serve only for illustration, further education, and information purposes, and do not constitute investment advice or personal recommendations in any way. They are intended only to facilitate the customer’s investment decision, and do not replace the advice of an investor or specific investment advice. The customer trades completely at his or her own risk.