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EURNZD Forecast – October-18-2023

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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 EURNZD pair. Stay tuned for insightful observations and key takeaways.

NZX 50 Ends Slightly Higher

FxNews – The New Zealand stock market saw a minor increase, with the NZX 50 index gaining 7.11 points, or just under 0.1%, to close at 11,221.48 on Wednesday. This modest rise came as traders digested encouraging data from China, New Zealand’s key trading partner, despite ongoing concerns about the Chinese property market.

EURNZD Forecast - October-18-2023

NZX 50 Index – Weekly Chart TradingView

New Zealand reported a higher-than-expected annual growth rate of 4.9% in the third quarter, surpassing the forecasted 4.4%. Additionally, September’s industrial output and retail trade figures suggested an uptick in consumption and activity.

Despite a shaky start to the day, the NZX 50 managed to recover from its morning losses, hovering close to its lowest level in nearly a year. The index saw gains primarily in the manufacturing and healthcare sectors, while commercial services, consumer goods, and utilities sectors struggled.

Looking ahead, traders are awaiting the release of New Zealand’s export and import data for September on Thursday. There are growing concerns that these figures could decline further due to subdued demand both domestically and internationally.

On the company front, Scott Tech saw its shares rise by 4.2%, Seeka Ltd increased by 3.5%, while AFT Pharmaceuticals and Scales Corp saw gains of 2.9% and 1.6% respectively.

A Bullish Outlook with Potential for Correction

The EURNZD pair is currently exhibiting a bullish trend in the weekly chart, trading above the key support level of 1.774. This positive momentum is further confirmed by the RSI indicator flipping above the mid-line, signaling a bullish outlook for the EURNZD pair.

EURNZD Forecast - October-18-2023

EURNZD Forecast – Weekly Chart

To gain a more detailed perspective on the EURNZD forecast, we delve into the daily chart. Here, we observe that the pair has closed above 1.783, breaking out of the daily bearish channel. While the RSI indicator remains above the mid-line, suggesting bullish momentum, the stochastic oscillator indicates that the pair might be overbought. This suggests that despite the overall bullish outlook for the EURNZD forecast, there could be a potential correction to the recent gains, with a retest of the pivot point.

eurnzd forecast

EURNZD Forecast – Daily Chart

With the price currently above the pivot point, our EURNZD forecast anticipates that the pair will target the resistance level at 1.812, followed by an attempt to reach August’s high around 1.816.

However, should the pair fall below 1.78, this would put a pause on the bullish scenario and could lead to a retest of the previous supply area around 1.75.

Key Levels to Watch.

Key levels are crucial in EURNZD forecast as they provide significant insights into the potential price movements of the currency pair. These levels, which include support and resistance points, pivot points, and psychological levels, serve as markers for traders to understand market sentiment and make informed decisions.

  • Pivot: 1.78
  • Resistance: 1.81
  • support 1.75

By identifying these key levels, traders can anticipate possible price reactions and adjust their strategies accordingly. Therefore, a comprehensive EURNZD forecast always includes a thorough examination of these key levels.

  • 18 October 2023
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