EUR/NZD drops to 100-DMA as RBNZ rate cut effect fades

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 10, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The EUR/NZD cross dropped to 100-DMA level of 1.6435 as RBNZ’s surprise rate cut effect faded while investors consider the possibility of ECB over delivery.

    NZD trims losses

    The NZD/USD pair is trimming losses suffered after RBNZ shocker, while the EUR/USD pair is feeling the heat of a possible ECB over action today. Consequently, the EUR/NZD cross fell from a high of 1.6588 to print a European session low of 1.6403, before recovering slightly to trade around 100-DMA levels.

    All eyes are now on the ECB and RBNZ’s surprise rate cut and dovish stance makes the cross an ideal candidate for EUR bulls to jump into if the ECB under delivers.

    EUR/NZD Technical Levels

    The immediate hurdle is seen at 1.65 (zero figure), followed by a resistance at the daily high of 1.6588, which if taken out could see the cross test 1.6605 (50-DMA). On the other hand, a break below 1.6403 (daily low) could see the cross test support at 1.6344 (10-DMA) and 1.6311 (5-DMA).
    For more information, read our latest forex news.

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