Forex Market: EUR/NZD trading forecast for Monday

During Friday’s trading session EUR/NZD traded within the range of 1.5918-1.5974 and closed at 1.5942.

Fundamental view

Euro zone

Consumer Confidence in Germany, the largest economy in the Euro zone, probably remained unchanged at 8.5 in June, according to median estimate by experts.

The Gfk Consumer Confidence index is calculated based on a study called “GfK-Wirtschaftsdienst Konsum – und Sparklima” (Economic Survey Gfk on consumption and savings). It is published the market research group – GfK Marktforschung. The study is based on monthly interviews with consumers on behalf of the European Commission. A representative sample of about 2,500 selected participants were asked questions about their expectations of the economic situation and how they evaluate their own financial situation.

The market research group – GfK Marktforschung is scheduled to publish the official data at 6:00 GMT on Monday. A higher-than-expected increase in the consumer confidence would boost demand for the 18-nation common currency.

New Zealand

New Zealands Trade Balance probably widened to 1.3 billion NZD in April from 0.8 billion NZD in the previous month.

Data for the trade balance is provided by the New Zealand Customs Service and represents the difference between the value of the nations exports and imports, over a period of year. Exports, which also include re-export transactions, are calculated based on (free on board) FOB conditions. Imports are estimated according to terms taking into account the cost of insurance (CIF) in New Zealand dollars. Trade balance is the difference between exports and imports, respectively, calculated on the basis of CIF and FOB prices. A positive balance means that exports exceed imports, while a negative one indicates the opposite. A Positive trade balance is illustrative of high competitiveness of the countrys economy.

Statistics New Zealand is scheduled to release an official report at 22:45 GMT on Sunday. A higher-than-expected surplus would support kiwis demand.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/NZD manages to breach the first resistance level at 1.5971, it will probably continue up to test 1.6001. In case the second key resistance is broken, the pair will probably attempt to advance to 1.6027.

If EUR/NZD manages to breach the first key support at 1.5915, it will probably continue to slide and test 1.5889. With this second key support broken, the movement to the downside will probably continue to 1.5859.