EURNZD Short In Play
The recent EURNZD breakdown trade idea has now triggered with the market having broken below the 1.6159 level. We’ve now spent three days below the level and, while the market remains in the red here, current price action needs monitoring as we are seeing lots of long tails beneath market, suggesting plenty of demand into these lows. With the retail market over 90% long there is plenty of scope for price to continue lower in the near term. RSI is in bearish territory and MACD is close to crossing bearish also.
Keep An Eye On
The explosion of COVID fears in the Eurozone, headlined by scenes of protests and riots in Europe this weekend, is weighing on the near term EUR outlook here. The major catalyst this week, however, will be the RBNZ meeting overnight on Tuesday/Wednesday. Given the hawkish expectations, the RBNZ will need to overdeliver (either in rates or in guidance) to send NZD firmly higher. Any disappointment for NZD bulls will likely see a near term reversal higher in this pair so make sure to monitor price action around the meeting.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.