EURNZD Up 4 Pips On Hourly Chart, Moves Down For the 5th Straight Day; Social Sentiment Biased Towards Buying

Hourly Update

(Last Updated September 22, 2020 0:16 GMT)

Currently, EURNZD’s rate is up 4 pips (0.02%) from the hour prior. This is a reversal of the price action on the previous hour, in which price moved down. As for the trend on the hourly timeframe, we see the clearest trend on the 50 hour timeframe. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

EURNZD End of Day Recap

Updated 00:30 GMT (04:30 EST)

EURNZD is down 35 pips (0.2%) since the previous day (opening today near 1.75018), marking the 5th straight day a decrease has occurred. Relative to other instruments in the Forex asset class, EURNZD ranked 26th the previous day in terms of percentage price change. Below is a price chart of EURNZD.

EURNZD

EURNZD Technical Analysis

The first thing we should note is that EURNZD is now close to its 20, 50, 100 and 200 day averages, located at 1.7705, 1.7714, 1.7655 and 1.7565 respectively, and thus may be at a key juncture along those timeframes. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 200 day average, which is 63.5 pips away. Volatility for EURNZD has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. The clearest trend exists on the 30 day timeframe, which shows price moving down over that time. Or to simplify this another way, note that out of the past 10 days EURNZD’s price has gone down 6 them.

The View From Around the Web

Of note is that traders in aggregate have opinions on EURNZD, with 14 buy signals on our radar and 3 sell signals. This imputes a buy/sell ratio of 4.67, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a relative strength index technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

EURNZD long opportunity idea.The downtrend line has been broken on the 1D, 4H and 1H timeframe.Maybe we can expect a little pullback till the previous support/resistace area, before take off.Rsi overbought on the 1H timeframe.


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram