The meeting of the US and Chinese presidents at the G20 summit will could reduce the risks of world trade wars
In this review, we will consider the trading instrument the euro against the New Zealand dollar. Will the EURNZD decrease? The downward movement occurs when the New Zealand dollar quotes rise, and the euro weakens.
China is New Zealand’s main trading partner. The expected meeting of the presidents of the United States and China at the end of November may reduce the risks in world trade. This is a positive factor for the currency of New Zealand. The rate of the Reserve Bank of New Zealand is positive and amounts to + 1,75% with an annual inflation of + 1,5% in the 2nd quarter of the current year. The rate of the ECB is equal to zero at annual inflation of +2,1%. The noticeable difference in rates can become one of factors of decreasing in EURNZD quotes. The euro is adversely affected by the budget crisis in Italy. Meanwhile, similar economic problems may also appear in Spain.
On the daily timeframe, EURNZD: D1 is trying to correct down from its 3-year high. However, its growth slowed down and some indicators of technical analysis formed signals for lowering. Downward correction may be caused by negative macroeconomic data in the EU and positive data in New Zealand.
Summary of technical analysis
Position Sell
Sell stop Below 1,747
Stop loss Above 1,793
In this review, we will consider the trading instrument the euro against the New Zealand dollar. Will the EURNZD decrease? The downward movement occurs when the New Zealand dollar quotes rise, and the euro weakens.
China is New Zealand’s main trading partner. The expected meeting of the presidents of the United States and China at the end of November may reduce the risks in world trade. This is a positive factor for the currency of New Zealand. The rate of the Reserve Bank of New Zealand is positive and amounts to + 1,75% with an annual inflation of + 1,5% in the 2nd quarter of the current year. The rate of the ECB is equal to zero at annual inflation of +2,1%. The noticeable difference in rates can become one of factors of decreasing in EURNZD quotes. The euro is adversely affected by the budget crisis in Italy. Meanwhile, similar economic problems may also appear in Spain.
On the daily timeframe, EURNZD: D1 is trying to correct down from its 3-year high. However, its growth slowed down and some indicators of technical analysis formed signals for lowering. Downward correction may be caused by negative macroeconomic data in the EU and positive data in New Zealand.
- The Parabolic indicator gives a bearish signal.
- TheBollinger bands have narrowed, which indicates low volatility. They are titled downward.
- The RSI indicator is below 50. It has formed a negative divergence.
- The MACD indicator gives bearish signals.
Summary of technical analysis
Position Sell
Sell stop Below 1,747
Stop loss Above 1,793