EURNZD – Buying into dip looking for a reversal pattern
Monthly – The bias is bearish while price remains inside the triangle formation.
Weekly – An Evening Doji Star has formed close to 61.8% Fibonacci resistance level and Marabuzo resistance at 1.7085.
Intraday – There is a reverse Head and Shoulders forming on the intraday charts. We look to buy into dips.
We look to buy at 1.6860
Target 1.7150 (4:83 reward to risk)
Trade ideas & daily market report July 9th 2019
The Euro-zone Sentix investor confidence index weakened to -5.8 for July from -3.3 previously which was below consensus forecasts and the weakest reading since November 2014, maintaining Euro-zone growth concerns. Trading activity was subdued ahead of the New York open, as is often the case on the Monday following a US employment report.
ECB member Coeure stated that the central bank could restart the quantitative easing policy if needed, although it is difficult to see what that would achieve given extremely low bond yields in Germany and other Euro-zone countries.
The US June employment trends survey declined to 109.5 from a revised 111.2 previously, but data had little impact. The dollar overall gained net support from reduced expectations of aggressive Federal Reserve easing and yield differentials between the Euro and dollar widened slightly in the US currency’s favour. In this environment, the Euro was unable to gain any traction and retreated towards the 1.1200 area with a mixed Euro trend on the crosses.
The US currency maintained a firm tone into the New York close with the dollar index at fresh 2-week highs as commodity currencies edged lower, although EUR/USD held just above 1.1200 with tight ranges prevailing.
There was a sharp decline in long US dollar positions according to the latest weekly data, lessening the risk of further liquidation. The dollar held firm on Tuesday with EUR/USD only just above 1.1200 as tight ranges persisted.