21 Aug 2013
EUR/NZD pulverizes 1.6896 resistance
FXstreet.com (Chicago) - EUR/NZD continues trading strong against a weaker NZD that gives in 0.30% so far. The euro remains a top option among market participants who weight off risk ahead of FOMC and European GDP data due later this week.
In New Zealand recent visitor arrivals data for July indicates a short decline from 6.0% to 5.9% to add up to previous comments by RBNZ Governor Wheeler during his speech earlier today. The Kiwi has been dragged down by the shift in narrative at the helm of the RBNZ, which imposed restrictions on home lending yesterday, aimed at cooling down the ongoing housing bubble in New Zealand. The market is pricing out chances of any immediate rate hike by the RBNZ.
Price action confirms rally’s extension to new session highs at 1.6896 for quick retracement back to the 1.6860 zone to regain strength and peak back above 1.6880. Trading at 1.6882, the pair oscillates between supports at 1.6841 (August 19th highs), 1.6825 (August 6th lows) ahead of 1.6800 (July 11th highs) and ahead of resistance set at 1.6872 (June 24th lows) followed by 1.6888 (June 28th highs) and 1.6900 (August 2nd lows). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis.
In New Zealand recent visitor arrivals data for July indicates a short decline from 6.0% to 5.9% to add up to previous comments by RBNZ Governor Wheeler during his speech earlier today. The Kiwi has been dragged down by the shift in narrative at the helm of the RBNZ, which imposed restrictions on home lending yesterday, aimed at cooling down the ongoing housing bubble in New Zealand. The market is pricing out chances of any immediate rate hike by the RBNZ.
Price action confirms rally’s extension to new session highs at 1.6896 for quick retracement back to the 1.6860 zone to regain strength and peak back above 1.6880. Trading at 1.6882, the pair oscillates between supports at 1.6841 (August 19th highs), 1.6825 (August 6th lows) ahead of 1.6800 (July 11th highs) and ahead of resistance set at 1.6872 (June 24th lows) followed by 1.6888 (June 28th highs) and 1.6900 (August 2nd lows). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis.