EURNZD Threatens Key Resistance Ahead of RBNZ- Longs at Risk Sub 1.59
- EURNZD testing multi-year resistance- weekly opening range in focus
- Updated targets & invalidation levels heading into RBNZ
- Event Riskon TapThis Week
Chart Created Using FXCM Marketscope 2.0
- EURNZD holding below key multi-year trendline resistance
- Resistance breach targets 1.6153, 1.62 (2011 low) & 1.6330 (September HDC)
- Near-term support & bullish invalidation at 1.5590
- Daily RSI struggling to hold above 70- pending support trigger in play
- Key Event Risk Ahead: RBNZ Interest Rate Decision tomorrow
Notes: The EURNZD weekly opening range has taken shape just below key resistance with the long-side of the trade at risk near-term below the median-line parallel extending off today’s high (~1.59). Keep in mind the pair posted an outside day candle into resistance with intraday RSI reaching its stretching into the lowest levels in more than two weeks (look for resistance at 60). A breach above the MLP resistance targets the ML off the lows keeps the broader long-bias in play targeting subsequent resistance targets into 1.6153/62.
Bottom line: looking for short triggers while below today’s high with a break sub-1.57 shifting the near-term focus lower towards the 1.5590 region (area of interest for possible long-entries). Caution is warranted heading into the RBNZ interest rate decision tomorrow evening with the release likely to fuel added volatility in kiwi crosses. A quarter of the daily average true range (ATR) yields profit targets of 45-50pips per scalp.
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Relevant Data Releases
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---Written by Michael Boutros, Currency Strategist with DailyFX
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