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Bulls are defending this channel bottom on EUR/NZD, but can upcoming data from the euro zone give them another boost? Here’s what I’m looking at.

Currency Snapshot:

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

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Forex Calendar:

  • U.K. claimant count change and average earnings index at 9:30 am GMT
  • German and euro zone ZEW economic sentiment indices at 10:00 am GMT

What to Watch: EUR/NZD

EUR/NZD 1-hour Forex Chart
EUR/NZD 1-hour Forex Chart

This pair has been hovering at its ascending channel support for quite some time, but it looks like buyers are keen on keeping this area intact.

A bounce could take EUR/NZD back to the channel top or at least until the mid-channel area of interest while a break below support could set off a reversal from the climb.

Price has formed higher lows to signal the presence of bullish momentum, but the move could still hinge on the outcome of the ZEW economic sentiment surveys to be released today. Analysts are hoping to see improvements that could keep optimism in play ahead of the ECB decision later in the week.

EUR/NZD Trend Analysis from MarketMilk
EUR/NZD Trend Analysis from MarketMilk

The trend analysis tool shows that the pair is mostly bullish. Going long at market if the reports turn out stronger than expected could work out for a short-term trade, provided the stop is wider than the average daily volatility of 81.5 pips.

EUR/NZD Volatility from MarketMilk
EUR/NZD Volatility from MarketMilk