EURNZD showed resilience during yesterday’s session, closing the day 38 pips higher after being down 70 pips in early trade. Not only that, but the pair closed the day above the 1.6520 handle.
I pointed this area out as support in the most recent weekly forecast. It’s no stranger to influencing price in the last seven months and has a history dating back to 2011.
More notably, however, is the fact that the support level is holding after the Euro cross managed to break free from channel resistance earlier this month. More details on this pattern can be found in the April 7th commentary.
My only reservation with the setup below is that I’m by no means bullish the Euro. That said, my bearish view of the New Zealand dollar outweighs that of the Euro, which at least accommodates a higher EURNZD should buyers follow through.
In summary, yesterday’s bullish price action re-exposes the 1.6830 resistance level. And it just so happens that 1.6520 is 10 pips below the 50% retrace of yesterday’s range, which lends itself well to those who might wish to secure a more favorable entry.
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