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MENAFN- Daily Forex)
In my daily analysis of minor currency pairs, the EUR/NZD pair has looked a little bit lackluster over the last 24 hours, but quite frankly this is a market that had gotten far too ahead of itself. The 1.80 level has offered significant resistance, which makes a certain amount of sense considering that it is a large, round, psychologically significant figure, and an area that has seen a lot of action in the past.
Technical Analysis
The technical analysis on this pair is a bit interesting, because we may have just had a major“throw over” as we broke above the 1.80 level. However, it is a little early to call it that, as we are still at least seen the market try to turn things around. Furthermore, it's a bit interesting to see that the euro has struggled against the New Zealand dollar over the last day or 2, as the Reserve Bank of New Zealand cut interest rates by 50 basis points. Ultimately, I do think that this is a market that continues to see a lot of value hunting, as long as we can stay above the 200 Day EMA.
If we were to break down below the 200 Day EMA, then it's possible that the market could see a move down to the 1.77 level, but I don't think that's very likely. However, if we were to see that happen, then I think you've got a situation where traders will look at this through the prism of a massive potential floor here. With this being said, think you have got a situation where traders will continue to look for an opportunity to get long of this market, so all we are missing now is a bit of momentum.
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If we were to turn around a break above the 1.81 level, then the market is likely to continue to go even higher, perhaps reaching the 1.8350 level. Because of this, I would get aggressive on a breakout above the 1.81 level, but I don't see that happening very easily from here.
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