Partner Center Find a Broker

With another top-tier leading indicator due from the euro zone, this pair could either bounce or break from the range support it’s currently testing.

Risk sentiment seems to be supporting the Kiwi while mostly downbeat euro zone PMIs earlier this week also favor a break lower.

But first, here’s a quick glance at how the majors are performing:

Currency Snapshot

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

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • U.K. retail sales at 7:00 am GMT
  • German GfK business climate index at 9:00 am GMT

What to Watch: EUR/NZD

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

This pair is sitting right at the bottom of its range on the 1-hour chart, still deciding whether to make a bounce or a break.

The upcoming German GfK consumer climate index could determine where this pair might be headed next, as a disappointing result could spur a breakdown.

If that happens, EUR/NZD might fall by around the same height as the rectangle pattern, which spans 1.7900 to 1.8275.

A bounce, on the other hand, could lead to a rally back to the range resistance.

Although price action seems to have calmed down in the past few sessions, risk appetite still appears to be slightly in favor of higher-yielding assets as traders remain hopeful that stimulus efforts could keep economic damages in check.

This could be bullish for the Kiwi, which has also enjoyed strong support from upbeat data and improving coronavirus-related updates lately.

A straddle setup could be a good option if you’re undecided which direction to play. Just make sure you check the average EUR/NZD volatility when setting stops and entries!