Rate Statements Propel EURNZD Toward Resistance

By Tomasz Wisniewski|

Published: February 28 2024, 03:59 GMT+0

Rate Statements Propel EURNZD Toward Resistance

Hello traders, in today’s technical analysis, we’re diving into the dynamics of the EURNZD pair, which presents an intriguing bullish narrative this week. The backdrop to this story is the recent interest rate decision from New Zealand. Despite rates holding steady, comments from Reserve Bank of New Zealand Governor Orr hinted at a potential for higher-than-anticipated rates in the future. Such remarks have injected volatility into the NZD, setting the stage for our analysis.

From a technical standpoint, the EURNZD has shown commendable strength. After enduring a period within a descending channel, highlighted by blue lines on our charts, the pair has now emerged above this confinement, signaling a robust buy opportunity. This breakout is notably reinforced by a solid bounce off the critical horizontal support at the 1.744 level, marked in green. The immediate aftermath of this movement sees the pair embarking on a journey towards the 1.787 resistance, delineated in yellow.

The momentum currently observed suggests a high probability that this upward trajectory will persist. The combination of external monetary policy signals and the technical posture of the EURNZD invites a bullish outlook for the near term. Our eyes are set on the yellow resistance line as the next significant milestone. Should the pair successfully breach this threshold, it would mark a pivotal moment, affirming the continuation of its bullish phase.

Source: https://www.axiory.com/analytics/technical-analysis/rate-statements-propel-eur-to-nzd-toward-resistanc