EURNZD Forecast – November-13-2023


In today’s comprehensive EURNZD forecast, we will first scrutinize the current economic conditions in New Zealand. Following that, we will meticulously delve into the details of the technical analysis pertaining to the EURPLN pair.

In a recent development, the yield on New Zealand’s 10-year government bond experienced an increase, reaching 5.225% on Monday. This rise came after a dip to 5.174% in the previous session. The upward trend in New Zealand bond yield reflects a similar pattern observed in its US counterpart. This was triggered by Moody’s decision to downgrade the US credit outlook due to escalating fiscal deficits and ongoing political deadlock.

The Role of the Reserve Bank of New Zealand

Market speculations suggest that the Reserve Bank of New Zealand (RBNZ), known for its hawkish stance, will persist in its efforts to curb persistent inflation. This speculation is based on the anticipation of the final policy meeting of the year scheduled for November 29th. In their early October meeting, the board maintained the borrowing costs at 5.5% for the third consecutive time. However, they cautioned that to achieve the targeted inflation range of 1 to 3% annually, restrictive borrowing costs would need to be sustained for a longer period.

Meanwhile, the latest PMI figures indicate a contraction in New Zealand’s service activity for the fifth time this year in October. Looking ahead, significant economic data from China, a key trading partner, is expected this week. This includes figures on industrial output, retail turnover, and surveyed unemployment.

The rise in the bond yield could have various implications for New Zealand’s economy. On one hand, it could indicate an expectation of higher inflation or economic growth. On the other hand, it could also signal increased borrowing costs, which could potentially slow down economic activity. Therefore, it’s crucial to monitor these developments closely to understand their potential impact on the economy.

EURNZD Forecast: Technical Analysis

The EURNZD currency pair is currently exhibiting a bullish flag pattern, a technical chart formation that often signals a potential upward trend. As it tests the mid-line of the bullish channel, market watchers are predicting a likely surge in the EURNZD price.

EURNZD Forecast - November-13-2023

EURNZD Forecast – 4H Chart

The trend remains bullish, with the next target set at the R1 resistance level (1.823). This is a price point that, if reached, could indicate a strong upward momentum. Following this, the pair may test the high reached in October. There’s also a possibility for the bulls to shatter the October ceiling, further driving up the price.

Supporting this bullish scenario is the pivot. The pivot is a technical analysis indicator used to determine the overall trend of the market over different time frames. However, if this level breaks, the EURNZD price could see a decline to the low of November. This coincides with the 50 level of Fibonacci retracement, a popular technical tool used by traders to predict potential support and resistance levels.

Stay tuned for more updates on the EURNZD forecast as we continue to monitor these key levels and trends. Our goal is to provide you with the most accurate and timely information to help you make informed trading decisions.

  • 13 November 2023
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