EUR/NZD Fares the Worst Out of Forex, Down 236 Pips; Crosses 20 and 50 Day Moving Averages

EUR/NZD Price Recap

EUR/NZD is down 236 pips (1.38%) since yesterday (with its current price near 1.6808), marking the 3rd day in a row it has gone down. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was up 3.09% from the day prior, but down 12.19% from the same day the week before. On a relative basis, EUR/NZD was the worst performer out of all 40 of the assets in the Forex asset class. Here is a price chart of EUR/NZD.

EUR/NZD Technical Analysis

Notably, EUR/NZD crossed below its 20 and 50 day moving averages yesterday. 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 50 day average, which is 40.3 pips away. It should be noted, though, the 20 and 200 day simple moving averages turned downwards, which may be a bearish sign. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving up. Interestingly, a trend in the other direction exists on the 90 day timeframe, where price is headed down. Or to simplify this another way, note that out of the past 14 days EUR/NZD’s price has gone up 7 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURNZD, with 12 buy signals on our radar and 21 sell signals. This imputes a buy/sell ratio of 0.57, which is bearish. As for the rationale, technical traders seem to be citing the appearance of flag, gartley, relative strength index, stochastic, triangle and wedge technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

EURNZD oversold levels in all timeframe from 30 mins into higher Daily timeframesIndicators & Oscillators are oversold waiting for reversal Confirmation 30 pips move for long positionBull flag pattern 30 min