I’ve got this simple EUR/NZD break-and-retest setup on my radar for today.
Do you think the area of interest will hold?
Before moving on, ICYMI, today’s Asia-London session watchlist looked at the potential resistance on AUD/NZD. 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:
- Australia’s NAB business confidence index slumped from +11 to -8
- Asian shares still wobbly on Delta variant concerns
- Fed officials ramp up taper talk on upbeat job openings report
- Bitcoin advances on Senate crypto tax deal
- Eurozone ZEW economic sentiment index slumped from 61.2 to 42.7
- German ZEW economic sentiment index down from 63.3 to 40.4
Upcoming Potential Catalysts on the Economic Calendar:
- U.S. preliminary non-farm productivity and unit labor costs at 12:30 pm GMT
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: EUR/NZD
There’s not much in the way of top-tier data from the U.S. today, so I’m looking at this currency cross pair for a bit more action.
As you can see from the chart above, EUR/NZD fell through a short-term rising trend line to signal that sellers are taking over.
Can it get more bearish vibes on this pullback?The Fibonacci retracement tool shows that the 50% level is right smack in line with an area of interest.
This includes the broken trend line, 200 SMA dynamic inflection point, and the 1.6900 major psychological handle!
Technical indicators confirm a likely continuation of the slide, as the 100 SMA is below the 200 SMA while Stochastic is reflecting exhaustion among buyers.
Unless risk appetite takes a turn for the worse, the Kiwi might keep enjoying plenty of upside since the RBNZ is on track towards hiking interest rates soon.
Meanwhile, the downturn in optimism as reflected by the ZEW economic sentiment surveys could be enough to drag the shared currency south.