May. 7, 2021
While in the midst of a 3 day down trend, losing a total of 0.26%, Today's positive session indicates a possible reversal – hesitant but green: from an earlier low of 1.6657, EUR/NZD is up to 1.6717 gaining 43 pips compared to the 1.6673 start of the day (0.26%).
Data out yesterday – Released today at 7:30 PM, Euro Zone's CFTC EUR speculative net positions showed an uptick coming in at 84,800, up from the previous number of 81,000. France Non-Farm Payrolls (QoQ) (Q1) released today at 6:45 AM with a figure of 0.3, This is better than the previous number of -0.1. Germany's Balance of Trade published today at 6:00 AM came out at 14.30 billion, falling short of the 19.50 billion projections and continuing its decline from the previous 18.90 billion figure.
As the day reaches an end, a chart visual study suggests that although EUR/NZD is green today and was as high as 1.6757, it seems to be slowing down slightly and moving away from the 1.6942 resistance line, and is now 225 pips below it. Asset volatility analysis shows that a slight indication of a slowdown comes from looking at the Bollinger bands: the upper band is at 1.6834 – a high enough level to usually suggest EUR/NZD is trading above its value. However, at 1.6738, EUR/NZD made an initial breakout above the 10 day Simple Moving Average, an indication of a positive trend.
Overall, looking at the technical analysis landscape, it seems a reverse of course in the short term might be next for EUR/NZD
While EUR/NZD is green so far today, these assets are not doing so well- Singapore Dollar dropped by 0.61%, its largest single-day drop since May 2020. EUR/CAD fell to 1.4649, hitting a 1 year low.