EUR/NZD looks ready to extend its weeks-long uptrend as bullish momentum stays intact.
Will the pair make new October highs? Or will we see a bearish reversal?
EUR/NZD 4-hour Forex Chart by TradingView
The euro gained ground on the New Zealand dollar last week, helped by less dovish remarks from European Central Bank members and a lift from stronger European equities.
Kiwi, meanwhile, stayed under pressure as renewed U.S.-China trade tension and shifting risk sentiment weighed on commodity currencies.
That could all change this week, with European PMI reports on deck and traders eyeing any fresh updates on U.S.-China trade policy.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie 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!
EUR/NZD, which has been trending higher since mid-September, pulled back from the 2.0500 psychological level but found support around 2.0275.
As you can see that area lines up with a previous inflection point, the 50% Fib retracement of October’s rally, the 100 SMA, and a trend line that’s been holding since the uptrend began.
A solid push and sustained trading above 2.0300 could send the pair back toward the 2.0500 highs, maybe even new 2025 peaks if momentum stays strong.
But if EUR/NZD keeps sliding and breaks cleanly below that support zone, traders could start eyeing lower areas of interest near 2.0200 or even 2.0100.
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.
Disclaimer:
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.
