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With tons of mid-tier data scheduled in the euro zone, I’ve got my eye on a downtrend setup for EUR/NZD. Here’s what’s up.

Currency Snapshot:

Forex Major Pairs Performance from MarketMilk
Forex Major Pairs Performance from MarketMilk

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Forex Calendar:

  • Germany’s retail sales at 7:00 am GMT
  • France’s consumer spending at 7:45 am GMT
  • France’s preliminary CPI at 7:45 am GMT
  • France’s preliminary GDP at 7:45 am GMT
  • Germany’s employment change at 8:55 am GMT
  • Italy’s unemployment rate at 9:00 am GMT
  • U.K.’s mortgage approvals and individual lending at 9:30 am GMT
  • Euro Zone’s CPI flash estimate at 10:00 am GMT
  • Euro Zone’s unemployment rate at 10:00 am GMT
  • Italy’s preliminary CPI at 10:00 am GMT
  • Canada’s monthly GDP at 1:30 pm GMT

What to Watch: EUR/NZD

EUR/NZD 1-Hour Forex Chart
EUR/NZD 1-Hour Forex Chart

There will be no top-tier news scheduled during the London session, but mid-tier reports such as Germany’s retail sales and employment data should get the traders’ attention.

Markets generally see today’s euro zone reports printing weaker numbers compared to the previous month. Not surprising after economic markers like euro zone and Germany’s manufacturing PMIs have seen weak readings.

On the other side of the trade, NZD stands to benefit from optimism over the U.S.-China trade negotiations. Until China officially retaliates over Trump signing the bill backing Hong Kong protesters’ rights, high-yielding bets like Kiwi will likely benefit from “phase one” deal speculations.

For now, MarketMilk™ is confirming EUR/NZD’s bearish bias on both short and long-term moving averages:

Shorting at current levels with stops above the falling trend line and the 200 SMA could still make for a decent reward-to-risk ratio especially if EUR/NZD hits new weekly lows or drops down to the 1.7000 area of interest.

Not sure how big you should set your stop losses? Note that EUR/NZD tends to move by 80 pips or so on Fridays for the past 30 days.