The technical situation on the daily chart of the EUR/NZD pair suggests possible further price increases. It is worth recalling that yesterday the Central Bank of New Zealand lowered interest rates to the lowest level in the history of the country. In addition, the commentary includes the possibility of further interest rate cuts if the situation requires it. The main threats include the US-China trade war, which has recently intensified even though we have previously had a series of reports of a friendly climate and an imminent agreement.
Yesterday, the German economy positively surprised with slightly better than expected reading of industrial production, supporting the euro. The chart shows the longer top shadow of yesterday’s candle. It was similar on 17 April and the exchange rate continued to rise. Even with a correction, it seems that we can expect another higher low in the new upward trend.
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