EUR/NZD sold off sharply on US-Iran ceasefire news, which sparked strong risk rallies.
Can the longer-term trend still resume at these correction levels?
Check out the inflection points on the 4-hour time frame.
EUR/NZD: 4-hour
EUR/NZD 4-hour Forex Chart Faster with TradingView
Just when the world was bracing for escalating conflict between the U.S. and Iran, Trump announced a two-week ceasefire agreement that allowed higher-yielding currencies like the Kiwi to breathe a sigh of relief.
Meanwhile, the RBNZ kept interest rates on hold at 2.25% as expected but warned that “decisive and timely” hikes may be required.
Will EUR/NZD find support soon?
EUR/NZD is testing the 38.2% Fibonacci retracement level around the key 2.0000 major psychological barrier, which could be enough to keep losses in check.Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the New Zealand dollar and the euro, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
If so, the pair could set its sights back on the swing high around R1 (2.0340) or at least until the pivot point level (2.0100). A larger correction could dip to the 50% level that lines up with S3 (1.9920) or the 61.8% Fib that coincides with a resistance-turned-support zone and the 200 SMA.
Look out for long red candlesticks closing below these potential support levels, possibly clearing the way for a drop to the next bearish targets at S4 (1.9740) then S5 (1.9650).
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Promoted: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art zooms in on EUR/NZD’s correction. But as any pro will tell you, even the cleanest trend-following setup can fall apart if the trader doesn’t stay disciplined when price starts testing the level.
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Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
