EURNZD has been trading near its highest highs in daily and four hourly time frame with the relative strength index hovering around 70 zone in daily while showing overbought conditions in four hourly chart. Euro versus New Zealand Dollar has broken some major resistances over the past few weeks i.e 1.66014, 1.69584 and 1.71000. The pair has been showing a range bound like consolidating behaviour between 1.66735 and 1.71000 in weekly time frame since early March uptil now without providing a clear breakout. The Euro strength came from NewZealand dollars weakness because of failing to provide any hike in interest rates but kept rates unchanged at 0.25% due to the new COVID level 4 restrictions. This sent the NZD index lower. The RBNZ reminded markets that they could decide to re-start the LSAP QE program if necessary. This was the support that was halted on July 23. 

BULLISH AND BEARISH CONDITIONS/POSSIBILITIES :

EURNZD has touched the "senkou span b" in weekly while taking an escape from Tenkan line and Kijun line with bullish strength but hasnt yet broken the major price action in shape of resistance at 1.71202. The exponential moving average 50 and 200 in weekly are also acting as a hook to the throat of EURNZDs this week bullish candlestick like an anchor showing psychological weakness at this level. If the highest high made in daily is broken with a bullish closing above - would lead the market towards 1.73910. Incase the market reversed due to the overbought conditions in four hourly chart, our first target would be 0.69102. The aforementioned level can also become a point of bullish continuation of trend in daily, acting as a retest area if the pair provided us with a bullish closing in shape of a reversal after falling from the current market price. 

EURNZD

Aug 21 2021