EURNZD is trending lower, with a descending trend line connecting the latest highs of price action. The pair had a bit of consolidation followed by a shallow pullback from tis latest slide, and it looks like sellers are ready to push for new lows.
The falling trend line which coincides with the 200 SMA held as strong resistance, as it was also near the 50% Fibonacci retracement level. Price could make its way down to the previous lows at 1.6160 or on to the 1.6100 area.
EURNZD Fundamental Factors
Price popped higher upon hearing the RBNZ’s dovish remarks, hinting that another rate cut is in the cards for December. The central bank kept interest rates on hold at 2.75% in this week’s statement but cited that it’s too early to tell if the recent economic improvements can be sustained.
However, the ECB is also in the dovish camp since Governor Draghi admitted that they’re already looking at a range of policy tools to employ in case further easing is warranted. Data from the region has been mostly disappointing, particularly those coming from its top economy, Germany.
For today, German and Spanish preliminary CPI readings are lined up. Disappointing results could lead traders to speculate about another negative inflation reading for the region, stoking expectations of additional ECB easing.
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