EUR/NZD has resumed upside after brief correction and is currently hovering around major trendline resistance at 1.6240.
We see further upside on decisive break above. Next immediate resistance is at 1.6469 (June 7, 2016 high).
Momentum studies on daily charts bullish. Technicals on weekly and monthly charts are also bullish.
Kiwi dented after New Zealand Treasury's bearish GDP forecasts.
Treasury expects the RBNZ to kick-off tightening in mid-2018. The Treasury also sees a smaller surplus in 2019-21 on lower growth.
Some profit taking likely in the Euro after run-up ahead of the Jackson Hole Symposium.
There are chances that ECB's Draghi could disappoint market participants by not touching upon the central bank's tapering plans.
Support levels - 1.62, 1.6140 (5-DMA), 1.6007 (20-DMA), 1.5842 (23.6% Fib retracement of 1.4534 to 1.6246 rally)
Resistance levels - 1.6240 (trendline), 1.63 (psychological level), 1.6545 (50% Fib retrace of 1.8555 to 1.45348 fall)
Watch out for decisive break above 1.6240 to go long. Target 1.63/ 1.64/ 1.6545
We see further upside on decisive break above. Next immediate resistance is at 1.6469 (June 7, 2016 high).
Momentum studies on daily charts bullish. Technicals on weekly and monthly charts are also bullish.
Kiwi dented after New Zealand Treasury's bearish GDP forecasts.
Treasury expects the RBNZ to kick-off tightening in mid-2018. The Treasury also sees a smaller surplus in 2019-21 on lower growth.
Some profit taking likely in the Euro after run-up ahead of the Jackson Hole Symposium.
There are chances that ECB's Draghi could disappoint market participants by not touching upon the central bank's tapering plans.
Support levels - 1.62, 1.6140 (5-DMA), 1.6007 (20-DMA), 1.5842 (23.6% Fib retracement of 1.4534 to 1.6246 rally)
Resistance levels - 1.6240 (trendline), 1.63 (psychological level), 1.6545 (50% Fib retrace of 1.8555 to 1.45348 fall)
Watch out for decisive break above 1.6240 to go long. Target 1.63/ 1.64/ 1.6545
The pair is consolidating previous week's gains.