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EURNZD Tests Key Support Ahead of RBNZ Events

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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.

I wrote about EURNZD in Sunday’s weekly forecast.

The idea was straightforward. Because last week closed above 1.7120 and then failed to hold it as new support, the euro cross was likely to turn lower this week.

As I often write, a false break to one side of a level or pattern often triggers an extended move in the opposite direction.

However, in the case of EURNZD, sellers still have work to do.

There is a trend line that extends from the year-to-date low that is propping up today’s session so far.

At the moment, that level comes in near 1.7060.

That’s the last line of defense for buyers as far as I can tell.

In other words, a daily close below that 1.7060 area could send EURNZD lower toward the 1.6720 horizontal support level.

But that doesn’t mean there won’t be bumps along the way.

No market moves in a straight line. That’s especially true for a currency cross like EURNZD.

For instance, I would also expect to see some demand in the 1.6930 region.

As for what could trigger a breakout here, we have several upcoming events that will provide an influx of volatility for the New Zealand dollar.

First up is the RBNZ Financial Stability Report at 5 pm EST. That’s followed by a speech from RBNZ Governor Adrian Orr at 7 pm EST.

Then we have the ANZ Business Confidence results at 9 pm EST followed closely by another speech from Adrian Orr at 9:10 pm EST.

As you can tell, the next 24 hours could be quite volatile for the EURNZD.

But as long as 1.7120 holds as resistance on a daily closing basis, I will continue to look for a short opportunity following a break below channel support at 1.7060.

Key support below that comes in at 1.6720 with a minor area at 1.6930.

Alternatively, a daily close back above 1.7120 would delay the short idea.

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EURNZD ascending channel on the daily time frame

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14 comments
Justin Bennett says

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OGBORO preciouslife says

You are a brother indeed. Thanks man

Reply
    Justin Bennett says

    Cheers.

    Reply
Adebayo saheed says

Simple,short and clear analysis always….thanks justin

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    Justin Bennett says

    You’re welcome.

    Reply
shoukat says

sir plz selling and buy errwo show plz down and up becouse many pople is never andrstan in english thanx ur great idias realy i m impress but plz must be show errow up and down plz

Reply
    Justin Bennett says

    I’m not sure what you mean by that, but if you’re looking for me to tell you when to buy or sell, you’re in the wrong place.

    If you want to be a trader, you have to learn how to trade.

    Reply
      Nara says

      Epic reply from the Master!

      Reply
Gideon Dauda says

Hi Justin, your trade idea on EURNZD agrees with my view. You also gave a hint on false breakout around a zone likely to turn into an extensive move in the opposite direction. You just turn on a bulb in my head. I like your approach and narration.

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    Justin Bennett says

    I sure did. Glad you’re finding the content helpful. Cheers.

    Reply
Praise says

thanks for that .sir Justin.

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Satya prakash says

Today I lost in EURNZD pair, I have short below 1.7060 on yesterday closing basics.

Reply
    Justin Bennett says

    1) The pair barely closed below 1.7060. These are areas, not exact prices.

    2) The idea above is still in play if you read carefully. My members know what I’m doing here.

    Reply
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