Stronger-than-expected labor market numbers from New Zealand helped drag EUR/NZD a lot decrease at present.
Will this result in the pair lastly breaking under its uptrend sample?
In case you missed it, New Zealand’s labor market numbers confirmed the unemployment charge rising from 3.9% to 4.0% in This autumn 2023. Fortunately for NZD bulls, employment additionally grew by 0.4% (from a 0.1% dip in Q3) and wage progress accelerated from 0.8% to 1.0% for the interval.
In the meantime, the euro didn’t get a lot help from comparatively better-than-expected Euro Space PMI releases yesterday.
Keep in mind that directional biases and volatility circumstances in market value are sometimes pushed by fundamentals. Should you haven’t but executed your fundie homework on the euro and the New Zealand greenback, then it’s time to take a look at the financial calendar and keep up to date on every day elementary information!
EUR/NZD 4-hour Foreign exchange Chart by TradingView
Will at present’s headlines encourage EUR/NZD to interrupt its uptrend sample?
Take notice that EUR/NZD is at present taking part in across the ascending channel help within the 4-hour timeframe. Not solely that, however the pair is near the S1 (1.7640) Pivot Level line in addition to the 200 SMA help within the chart.
And if that doesn’t look bullish sufficient for ya, the pair additionally appears prefer it’s sporting a bullish divergence!
Just a few extra bearish candlesticks might help a draw back breakout and draw sufficient sellers to tug EUR/NZD to potential inflection factors like 1.7600 or 1.7550.
However what if we’ve seen the final of EUR’s weaknesses this week?
If market headlines and elementary drivers result in EUR-buying or NZD-selling as a substitute, then you definitely’ll wish to be careful for constant buying and selling again above the S1 and channel help.
The 1.7700 psychological deal with and 1.7730 Pivot Level line might make for good targets if EUR/NZD sees sustained bullish stress.
Good luck and good buying and selling this one!
