EUR/NZD Forex Signal: Eyes Key 200-Day EMA
Potential signal:
- On a daily close above the 1.79 level, I am a buyer of this pair.
- I would have a stop loss at the 1.7785 level, and would look for a move to 1.80, where I would take half off, move stop loss to break even, and then aim for 1.8150 with the rest of the position.
During my daily analysis of cross pairs, I've noticed this one has bounced quite drastically and has even threatened the 200 day EMA. The 200 day EMA, of course, is an indicator that a lot of people will be paying close attention to, but it's also been sliced through multiple times, and it is relatively flat. So, I only read so much into it.
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1If we were to take off to the upside from here, perhaps closing well above candlestick high for the trading session on Tuesday, then I think you might see a pretty significant turnaround. Keep in mind that although the Euro isn't necessarily considered to be the first place people go to for safety, the reality is that European firms will pull money out of New Zealand if they start to get concerned, and that's part of what you are seeing.
Chinese Economy Seems a bit “Off?”
After all, China has released numbers overnight that suggested that demand is falling off of a cliff in that country, and that has a direct effect on everybody in the Pacific, including New Zealand. If that's going to be the case, then money will repatriate itself to places like Germany. If we can break above the highs of the trading session on Tuesday, then I think there's a real shot that the market goes looking to the 1.80 level, possibly even as high as the 1.83 level of the longer term. This is more or less going to be a risk off type of situation, although it's not the first place you think of typically. On the other hand, if we turn around and take out the 1.7650 level, then I think the pair drops down to the 1.75 level. This is simply a measurement of risk appetite.
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