Home Forex FX Play of the Day: EUR/NZD Uptrend Pullback Forward of ECB Determination

FX Play of the Day: EUR/NZD Uptrend Pullback Forward of ECB Determination

FX Play of the Day: EUR/NZD Uptrend Pullback Forward of ECB Determination


Who’s able to commerce the ECB resolution?

I’m this straightforward pattern setup on the hourly chart of EUR/NZD to gauge if help ranges may maintain.

As you’ll be able to see from the chart under, the pair has shaped larger lows and better highs related by an ascending channel.

EUR/NZD 1-hour Forex Chart

EUR/NZD 1-hour Foreign exchange Chart by TV

Worth is dipping to the mid-channel space of curiosity, which occurs to be proper smack in keeping with the 50% Fibonacci retracement stage.

A bigger correction might discover extra patrons on the 61.8% Fib that’s nearer to S1 (1.7750) and a former resistance zone which may now maintain as a flooring.

Stochastic is already beginning to climb, suggesting a return in upside strain. I’m even seeing larger lows on the oscillator and decrease lows on EUR/NZD, making a bullish divergence!

Transferring averages are additionally hinting at a continuation of the uptrend, because the 100 SMA is above the 200 SMA to replicate the presence of bullish vibes.

In that case, the pair might recuperate to the swing excessive at 1.8065 or the highest of the channel nearer to the 1.8100 main psychological mark quickly.

I’ll be preserving shut tabs on the July ECB assertion, although, as their rhetoric would doubtless decide the place the shared forex is headed for the remainder of the week.

An rate of interest hike has been priced in for fairly a while now, so market junkies could be extra curious to search out out if the central financial institution will preserve the door open for future tightening strikes.

A extra cautious announcement might spur short-term losses for the euro, probably resulting in a check of the particular channel help round 1.7650. A break under this, nonetheless, might imply {that a} reversal is within the works.

Do you assume the ECB would sound much less hawkish this time?

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