EUR/NZD forecast for March 24, 2021
Looking at the weekly time frame graph, we see that the pair EUR/NZD found support on Fibonacci retracement 61.8% level. After that, we see a bounce up where we were met with resistance in moving averages MA200 and EMA200 at 1.70000. If we see a break above the Fibonacci level at 50.0% at 1.72300 is waiting for us, and before that, the EUR/NZD pair should cross the level of the previous lows at 1.71500. To continue the bearish scenario, we need a rejection of the MA200 and EMA200, directing the EUR/NZD pair back to the Fibonacci 61.8% level. A fall below that level opens the door to 1.60000.
In the daily time frame, we see that the EUR/NZD pair, after finding support at 1.65000, moved above the moving averages MA20 and EMA20 and then above MA50, directing the EUR/NZD pair towards MA200 and EMA200 at 1.72000. for now, we have resistance at 1.70000, and we can expect less consolidation at that level if we expect a continuation towards the above targets on the chart. For the bearish scenario, we expect a deduction of 1.70000, and then we look at the previous low as potential support.
We can set the Fibonacci level on the four-hour time frame, and we see that the EUR/NZD pair stopped at a 61.8% level after the pullback, where it now consolidates before the next major movement on the chart. Below, a Fibonacci level of 50.0% at 1.68350 awaits us, where the EUR/NZD pair will meet the moving average of Ma20 and EMA20. For the above targets, our first target is the previous high at 1.70420, and if we reach that level, we will likely see the pair at 78.6% Fibonacci level.
From the economic news for the EUR/NZD currency pair, we can single out the following: The growth of the private sector in Germany accelerated in March, driven by a record expansion in production, IHS Markit flash data showed on Wednesday. The composite flash output index rose to a 37-month high of 56.8 from 51.1 in February. The reading was well above the economists’ forecast of 51.6. The result was driven by improved performance in production and services.
The Procurement Manager Index reached 50.8 versus 45.7 in the previous month. The expected reading was 46.2. Production PMI advanced to 66.6 from 60.7 in the previous month and well above the forecast of 60.8. The latest result was the highest since April 1996. New Zealand had a surplus in trade in goods of 181 million New Zealand dollars in February, New Zealand statistics announced on Wednesday. This followed a revised deficit in January of $ 647 million (originally $ 626 million).
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