Today’s free forex signals service is a buy on the EUR/NZD as we expect the market to observe Euro’s upside correction while NZD is still on the downfall.
The EUR/NZD pair sees an upside breakout as the Euro remains calm and quiet after a brief fall in the Asian session. However, the New Zealand dollar remains on the backfoot, continues to fall across the board. The EUR/NZD price broke the 100-period SMA on the 4-hour chart. But the price seems not to find acceptance above it.
The Euro can stay under pressure amid German elections. Olaf Scholz remains a strong contender against Angela Merkel for the position of Federal Chancellor. The voting uncertainty may continue to weigh on the Euro.
Evergrande’s creditors owe around $300 billion. The rescue effort has ground to a halt. Because of uncertainty about how the impact on other construction companies and suppliers will be, there is a dark cloud hanging over markets worldwide. Increasing concerns about global growth are making the dollar a safer asset. The global economic slowdown and rapid expansion of the delta variant continue to worry investors.
New Zealand dollar is a highly risk-sensitive asset, observes a bearish pressure on the day amid broader risk-off mood stemming from the Evergrande and Delta variant spread. Hence, the EUR/NZD pair seeks advantage of a weak NZD rather than a strong Euro.
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Free forex signals – Buy EUR/NZD at 1.6733
Instrument: EUR/NZD
Order Type: BUY STOP
Entry price: 1.6733
Stop Loss: 1.6618
TP1: 1.6913
Our Risk Setting: 1%
Risk / Reward Ratio: 1:1.56
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Saqib Iqbal
