EURNZD bearish outlook: projecting a downturn with bullish NZD and bearish EUR in the near term

EURNZD is in a bearish trend and the price recently dropped below the last 3 months’ low and closed below that level. Currently, the price is making a bullish correction and will possibly retrace back to the 1.78948 resistance level before heading for new lows.

The New Zealand dollar is around the major support level and will possibly turn bullish in the near future, pushing the price of EURNZD down.

The price will possibly push above the 1.78180 resistance level and will wipe out most of the short entries before dropping. The 0.618 Fibonacci level around the same price is another confirmation for short entry at the 1.78948 resistance level.

Fundamentally, the price of EUR/NZD will remain relatively stable as there is no major news on EUR and NZD in the coming two days.

However, NFP (non-farming payroll data will be published this Friday which will impact the price of EUR/NZD significantly. If the data comes out positive it will push the price of EUR/NZD upward, and if the data comes out below expectations the price of EUR/NZD will also drop.

• EUR/NZD will possibly continue its bearish trend after retracing to the 1.7894 resistance level.  
• This trade has been sent after considering both technical and fundamental perspectives.
• Multiple take-profit levels have been added to secure profit along the way.
• The risk-to-reward ratio on this trade is 1:4.04.
• I would recommend watching this trade while the NFP data is published this Friday
• Good luck!

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