EURNZD Up 8 Pips Over Past Hour, Came Into Today Down For the 2nd Consecutive Day; Breaks Below 50 and 100 Day Averages

Hourly Update

(Last Updated September 17, 2020 23:16 GMT)

At the time of this writing, EURNZD’s rate is up 8 pips (0.05%) from the hour prior. It’s been a feast for bears operating on an hourly timeframe, as EURNZD has now gone down 4 of the past 5 hours. Regarding the trend, note that the strongest trend exists on the 20 hour timeframe. Price action traders may also wish to note that we see a doji candlestick pattern on EURNZD. Given that we see downtrend on the 20 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. The moving averages on the hourly timeframe suggest a bullishness in price, as the 20, 50, 100 and 200 are all in a bullish alignment — meaning the shorter durations are above the longer duration averages, implying a sound upward trend.

EURNZD End of Day Recap

Updated 00:30 GMT (04:30 EST)

EURNZD is down 61 pips (0.34%) since yesterday (opening today near 1.76417), marking the 2nd consecutive day a decline has happened. Relative to other instruments in the Forex asset class, EURNZD ranked 36th yesterday in terms of percentage price change. Here is a price chart of EURNZD.

EURNZD

EURNZD Technical Analysis

Moving average crossovers are always interesting, so let’s start there: EURNZD crossed below its 50 and 100 day moving averages yesterday. 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 up 5 them.

The View From Around the Web

Of note is that traders in aggregate have opinions on EURNZD, with 20 buy signals on our radar and 5 sell signals. This imputes a buy/sell ratio of 4, which is bullish. As for the rationale, technical traders seem to be citing the appearance of demand zone and trendline technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

EURNZD shorts are running nicely, pushed down as expected….So to cover myself I am taking a long trade to expose myself to whatever happens!…If the long trade takes a loss then my short runs into more profit so no loss, whereas if we push up from here I would take a breakeven but hedging a long allows me to be involved on both sides of the market.


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