EUR/NZD Up 66 Pips; Breaks Above 50 Average

EUR/NZD Price Recap

A moment of silence, please, for the end of EUR/NZD’s 3 day down streak; price ended yesterday up 66 pips (0.39%) to finish the day at a rate of rate of 1.6899. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was up 65.84% from the day prior, but down 20.81% from the same day the week before. Relative to other instruments in the Forex asset class, EUR/NZD ranked 6th yesterday in terms of percentage price change. Let’s take a look at price chart of EUR/NZD.

EUR/NZD Technical Analysis

First things first: EUR/NZD crossed above its 50 day moving average 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 20 day average, which is 24.2 pips away. It should be noted, though, the 50 day simple moving average turned upwards, which may be a bullish sign. Something else of critical noteworthiness is that EUR/NZD may have broken its trend on the 14 and 90 day basis, as the trend’s momentum appears to be slowing down. Volatility for EUR/NZD has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. Or to simplify this another way, note that out of the past 10 days EUR/NZD’s price has gone down 6 them.

A final note on correlations: in the recent most week, NZD/CHF has been the pair most correlated with EUR/NZD — a common occurrence, given the presence of NZD in both currency pairs. Alternatively, regarding pairs with the lowest correlation to EUR/NZD? Well, look no further than NZD/CHF if you’re focused on just this past week, or NZD/USD for a look at a broader, two week window.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURNZD, with 9 buy signals on our radar and 10 sell signals. This imputes a buy/sell ratio of 0.9, which is neutral. As for the rationale, technical traders seem to be citing the appearance of a fibonacci technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Price has reached a strong area of resistance, along with making a rejection to the daily trendline. Price is now making a lower high after the last downside impulse, & from here will be anticipating price to make a move lower towards the highlighted regions below.