European Central Bank (ECB) Rise Today!
Will the central bank’s decision increase the euro’s losses against some of its peers?
In case you have been observing the other Euro pairs, you should know that EUR/NZD has been on a noticeable downtrend since it hit resistance at 1.7840 levels.
The pair is now trading near 1.7450, after making fresh monthly lows near 1.7400.
Trade EUR/NZD for 1 hour Planned by TV
Can the husband continue his losses?
The hourly chart indicates that the EURNZD is back within a descending channel pattern after a short trip to the lows of 1.7400.
If we zoom in on the 15-minute timeframe, we can see that potential short-term resistance is around R1 (1.7530) of today’s standard pivot points.
Not only is it near the middle of the channel resistance, but it is also close to yesterday’s highs and the midpoint Daily fluctuations of the average EUR/NZD.
EUR/NZD 15 minute forex Planned by TV
Today’s ECB decision could push the EUR/NZD to the potential resistance we are looking for.
Markets see Chair Lagarde and her team raising interest rates by 25 basis points and are likely to hint at more rate hikes in the foreseeable future.
But depending on how the euro reacts to previous rate hikes, and depending on how markets ultimately turn against the US dollar after Powell’s pressure, the euro could fall despite the rate hike.
This is why I am more bearish than bullish in EURNZD in the next two trading sessions.
EUR/NZD could rally to 1.7550 – 1.7560 during the ECB event before revisiting previous lows near 1.7450.
It could drop to 1.7400 if traders decide to dump the US dollar and take “risky” bets like the NZD before the weekend!
Of course, I am willing to target higher areas of resistance if the Euro ends up extending its gains after the ECB event.
But for now, I look for a selling opportunity near the mid-channel resistance and target EUR/NZD previous lows at 1.7450 and 1.7400.
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