EURNZD has been struggling since last Friday with key support at 1.7120, which has stopped sellers from continuing the downward trend. As can be seen in the daily chart below, both on Friday and Monday, this support was tested, but each time the daily session closed above it.
The decision took place during yesterday’s session, specifically in the last hours before closing, when the New Zealand dollar strengthened strongly after the data from the domestic labour market. The main factor behind the slump in EURNZD was the publication of the unemployment rate for the third quarter, which dropped from 4.5% to 3.9%.
A strong sell-off, which lasted until the session closing, resulted in breaking the key level and knocking out the wicks of the two previous candles. Thus, the sellers have opened their way to another significant support at 1.6670, which is better illustrated on the weekly chart.