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EURNZD up by 2.9%

Market Analysis

EURNZD, Daily

The euro’s ascent has continued, with EURUSD logging a high at 1.1378, which is the loftiest level seen since June 2016, while EURJPY made a 127.77 peak, the highest level the cross has seen since March 2016. EURGBP has punched above recent congestion highs and is trading in seven-month high territory. The spark was ECB President Draghi, yesterday, who put a tapering in policy squarely on the agenda. Global stocks have traded lower as a consequence, along with news that the U.S. Senate healthcare vote has been delayed, which likely implies delays in tax reform and infrastructure investment plans. Additionally, EURNZD seems to be temporarily back on its feet again, by clocking a month’s peak at 1.5676, and the pair is now up by 2.9% since Draghi’s rally-catalysing remarks of yesterday. EURNZD was also affected by Asian stock markets who mostly headed south, with Australia’s ASX a notable exception.

EURNZD manage amid this Euro strength to close yesterday above 20-Day moving average, while still moves northwards today. This strength is likely to continue at least in short term. Therefore by considering that uptrend is likely to continue at least within the day, a long position was taken today morning with entry at 1.5650. Targets were set at 1.5750 and at the 23.6 Fibonacci level for the year, i.e. at 1.5820. Support at 1.5630

Neverthelesee, Stochastics are at 60 and 33 sloping upwards , while Parabolic SAR turned positive in the daily time frame.

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Andria Pichidi

Market Analyst

HotForex

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