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The eurozone is about to release its industrial production figures while EUR/NZD is breaking above its neckline.

Can this reversal gain any traction?

Before moving on, ICYMI, yesterday’s watchlist looked at the downtrend on USD/JPY ahead of the U.S. CPI release. Be sure to check out if it’s still a valid play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

U.S. headline CPI down by 0.1% m/m as expected in Dec

U.S. core CPI posted 0.3% m/m uptick as expected vs. previous 0.2% gain

Chinese trade surplus widened from $69.8B to $78B in Dec, but imports and exports fell

U.K. economy expanded by 0.1% m/m in Nov vs. projected 0.2% contraction

U.K. industrial production slipped by 0.2% in Nov as expected

U.K. Nov goods trade deficit widened to 15.6B GBP vs. 14.9B GBP forecast

Upcoming Potential Catalysts on the Forex Economic Calendar:

Eurozone industrial production at 10:00 am GMT
U.S. preliminary UoM consumer sentiment index at 3:00 pm GMT

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: EUR/NZD

EUR/NZD 4-hour Forex Chart

EUR/NZD 4-hour Forex Chart by TradingView

This forex pair is already busting through its reversal pattern neckline. Blink and you might miss it!

The inverted head and shoulders pattern on the 4-hour chart of EUR/NZD already seems to be in play, hinting that a rally of the same height as the formation is due.

This spans around 600 pips, which means that euro bulls could be setting their sights on the 1.7600 handle as a target.

Moving averages are in favor of more gains for the pair, as the 100 SMA recently made a bullish crossover above the 200 SMA. EUR/NZD is also trading above both indicators, so these could hold as dynamic support on dips.

Stochastic has a bit of room to climb before reflecting overbought conditions, which means that there is some bullish momentum left before buyers take it easy.

The eurozone industrial production report might give a fresh boost for the pair, though, as number crunchers are projecting a 0.6% rebound for November. Stronger than expected results might spur another leg higher for the shared currency, so stay tuned!