Forex Market: EUR/NZD daily forecast

During yesterday’s trading session EUR/NZD traded within the range of 1.6103-1.6252 and closed at 1.6236.

At 8:00 GMT today EUR/NZD was gaining 0.26% for the day to trade at 1.6266. The pair touched a daily high at 1.6286 at 7:00 GMT.

Fundamental view

Euro zone’s gauge of economic sentiment probably improved to a reading of 102.9 in April from 102.4 in the previous month, the strongest reading since July 2011.

This is a compound index, that is comprised of five sub-indexes, reflecting sentiment in different sectors of the economy. It includes consumer confidence, industrial confidence, confidence in the sector of services, confidence in the retail trade sector and confidence in the sector of construction. Readings above the key level of 100.0 are indicative that optimistic forecasts overwhelm pessimistic ones. The more readings distance from it, the stronger the economic confidence is. The official reading is due out at 9:00 GMT.

At the same time, the preliminary annualized index of consumer prices (CPI) in Germany probably accelerated to 1.4% in April from 1.3% in the preceding month. In monthly terms, the CPI probably decreased 0.1% this month, after consumer prices climbed 0.3% in March. The official data will be released at 12:00 GMT.

Higher-than-expected readings would certainly heighten the appeal of the 18-nation common currency.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/NZD manages to breach the first resistance level at 1.6289, it will probably continue up to test 1.6346. In case the second key resistance is broken, the pair will probably attempt to advance to 1.6440.

If EUR/NZD manages to breach the first key support at 1.6142, it will probably continue to slide and test 1.6048. With this second key support broken, the movement to the downside will probably continue to 1.5993.