Forex Market: EUR/NZD daily forecast

May 8, 2014 8:29 am

During yesterday’s trading session EUR/NZD traded within the range of 1.5993-1.6096 and closed at 1.6084.

At 8:25 GMT today EUR/NZD was adding 0.18% for the day to trade at 1.6093. The pair touched a daily high at 1.6102 at 1:15 GMT.

Fundamental view

At 11:45 GMT the European Central Bank will announce its decision on borrowing costs. The benchmark interest rate will probably be left unchanged at 0.25% at the policy meeting, according to the median estimate by experts. However, the recent strength of the euro is increasing pressure on central bank’s policy makers to take action, because the strong currency keeps inflation depressed. A cut in rates would have a bearish effect on the 18-nation common currency.

The decision on policy will be followed by a press conference with ECB President Mario Draghi, scheduled at 12:30 GMT. Market volatility during this event is usually high.

Technical view

Screenshot from 2014-05-08 11:29:05

According to Binary Tribune’s daily analysis, in case EUR/NZD manages to breach the first resistance level at 1.6122, it will probably continue up to test 1.6161. In case the second key resistance is broken, the pair will probably attempt to advance to 1.6225.

If EUR/NZD manages to breach the first key support at 1.6019, it will probably continue to slide and test 1.5955. With this second key support broken, the movement to the downside will probably continue to 1.5916.

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