- The Euro rallied a bit during the trading session on Tuesday, as we continue to see a case being made for support.
- It’s probably worth noting that the RBNZ has an interest rate decision coming out on Wednesday, so I do think that will have a major influence obviously.
- Nonetheless, this is a market that looks as if it is trying to sort itself out near the 200-Day EMA, and the large, round, psychologically significant figure of 1.78 at the moment.
Technical Analysis
I believe that the technical analysis of this pair does suggest that we could go higher, but you also have to keep in mind that the central bank interest rate decision and press conference could always have a lot more to do with where we go next. After all, technical analysis only done so much, otherwise it would always work in be 100% correct. Imagine a world where traders can simply look at engulfing candlestick and make a fortune. That’s not actually how it works.
Top Forex Brokers
That being said, it does look like the 61.8% Fibonacci route is a level has offered a bit of support, and of course we are breaking above the 200-Day EMA, both of which are very bullish signs. I think the market probably goes looking to the 1.27 level above, which is the 50-Day EMA, but is not necessarily a situation where it will be easy to get there. If we turn around and break down below the bottom of the massive candlestick from the Monday session, then it’s very possible that we could drop all the way down to the 1.75 level.
Keep in mind that Europe is heading out of a recession, therefore a lot of people are banking on the currency and of course the equity markets on the continent. New Zealand link be a little bit of a different situation, mainly due to the fact that it is so highly dependent on Asia, which seems to be a bit of a mixed bag at the moment. Wednesday should be very volatile, but I do think at this point in time, we have a couple of clear levels to pay attention to.
Not sure which broker to choose? We've made a list of the best forex brokers for you.