Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

EUR/NZD Forecast: Faces Key Support at 1.80

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
  • The euro has fallen rather significantly during the trading session on Friday to plunge towards the 1.82 New Zealand dollar level.
  • At this point it's obvious that the market is likely to continue to go back and forth with a range that is defined by the 1.81 level underneath and the 1.84 level above.
  • In general, this is a market that is trying to work off some of the excess froth that we had seen previously.

With that being said, I think this is a market that probably is trying to determine whether or not it can continue to show this type of strength. After all, when markets do move as sharply to the upside as we have just seen, it does make quite a bit of sense that they have to digest some of the gains.

Top Forex Brokers

1
Get Started 74% of retail CFD accounts lose money Read Review

As Long as We Can Stay Afloat

Ultimately, as long as we can stay above the 1.80 level, then I think you have a real shot at this market going higher over the longer term. That being said, central banks around the world, including in the European Union and New Zealand, are in the midst of cutting rates and therefore it's all a race to the bottom. Remember, you are trading relative strength against each other, not necessarily that you believe in one economy over the other. Both of these economies are probably heading for some problems, but really at this point, when you start to worry about risk, Europe is considered to be a much safer place than New Zealand, although New Zealand isn't exactly the wasteland either.

EUR/NZD Forecast Today 19/8: Faces Key Support (graph)

That being said, I think we will continue to range-bound trade until we finally get some type of fundamental reason to break out. Right now, it does not appear we have it in an obvious form, so therefore I think the market is more likely than not to continue to hang around in the same region, giving you an opportunity to be a bit of a sideways and range bound type of consolidation trader.

Ready to trade our daily Forex analysis? We’ve made this forex brokers list for you to check out. 

Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

Most Visited Forex Broker Reviews