EUR/NZD and NZD/USD maintain their traditional monthly and yearly story of dominance as both retain complete opposite correlations, and, for friends and followers over the years, EUR/NZD and NZD/USD combo were always the pairs recommended to trade around RBNZ decisions.
EUR/NZD must break is located above at 1.7088 while NZD/USD awaits its break below at today’s 0.7226. NZD/USD’s current daily and longer term price is miles too high while EUR/NZD lies in wait to travel considerably higher but it needs a daily correction.
EUR/NZD’s vital and overbought daily break points below are located at 1.6924 and 1.6893. Overbought coincides to current price above its upper range point from 1.7014.
EUR/NZD like its counterpart pairs posted this week in NZD/USD, USD/JPY, USD/CAD and CAD/JPY must travel back and trade inside their ranges.
NZD/USD held its lower range point yesterday at 0.7170’s while EUR/NZD lacked a choice except to break above 1.7088 to 1.7160’s. As EUR/NZD was miles above 1.7014 , it corrected lower today to its range point at 1.7014.
At 1.6924 and 1.6893 is well supported by today’s lower range point at 1.6772. The most significant target above 1.7088 is 1.7290 on a break of 1.7159.
At 1.7159 is not only the sole break point to 1.7290 but a break above 1.7290 allows a later run to the 10 year average at 1.7421. This will take more time as first 2 extreme prices are located at 1.7195 and 1.7256.
The larger overall range for EUR/NZD is located from 1.7950 to 1.6226 while the shorter range is located between the 5 and 10 year averages from 1.6027 to 1.7421. At 1.7421 coincides to NZD/USD at 0.6800’s. Within the 5 and 10 year range, EUR/NZD is well supported from 1.6200’s, 1.6500’s, 1.6700’s to 1.6900’s. The supports below are many and solid.
EUR/NZD trades well above 1.6027 and near its upper range because it can’t handle a lower price. Most vital above 1.7088 then a new trend begins.
As long as EUR/NZD trades above 1.6924 and 1.6893 then the buy drop strategy will remain for many weeks to months ahead.
As an aside to posted forecasts this week, USD/CAD broke its upper range at 1.3092, bolted to 1.3140’s and resulted in a free trade short back to range below 1.3092. CAD/JPY broke its lower range at 80.50’s and bolted to 82.44. USD/JPY Sunday’s long had to trade to 106.32 inside its range and traded to 106.60’s. NZD/USD 0.7170’s and 0.7229. All Forecasts correct.