A Critical Support Test for EUR/NZD

In today’s spotlight on EUR to NZD, we’re observing a fascinating dynamic between the weakening Euro and the strengthening New Zealand Dollar. This pairing currently sits at a crucial juncture, with a pivotal battle unfolding at the 1.75 support level, delineated in green on the chart.

The situation is tense, with buyers clinging onto hope for an upward trajectory, but they face a mounting challenge as selling pressure intensifies. The Euro’s reluctance to move away from this critical support point signals an escalation in bearish momentum. Wednesday’s trading session has commenced with a renewed assault on this support, marked by a notable dip in prices. However, it’s important to remember that the day’s trading is far from over, and the possibility of a rebound remains, potentially mirroring the pattern of long tails we’ve seen throughout December.

For traders seeking actionable insights, the strategy is clear: a daily close below the green support line would unequivocally signal a selling opportunity. Conversely, should the price exhibit resilience and form yet another long tail, this could present an attractive chance for a long position.

Source: https://www.axiory.com/analytics/technical-analysis/a-critical-support-test-for-eur-nzd