EUR/NZD extends its gains as the “Kiwi” suffers across the board

FXstreet.com (Athens)- While the single currency is moving sidelines since the early opening of the Asian trading session, the EUR/NZD is extending its huge yesterday’s gains, moving further upwards, alongside with a great momentum.

EUR/NZD upwards following one of the weakest Trade Balance in NZ history since 2007


The EUR/NZD seems to have gathered enough uptrend momentum to move higher and higher. After yesterday’s enormous gain of approximately 154 pips, today the EUR/NZD is still trading the upper level earning so far another 100 pips, thus a sump up as of 254pips in less than 2 days. The instigator appears to be the dismal Trade Balance (Aug) which came in at a NZD 1.1 Billion deficit versus an expected 722 Million gap. Elaborating on, this is the worst Trade Balance print in recent history of New Zealand, both in aspects of missing the estimations, but as well on the absolute deficit gap. Last but not least, other factors that boosted further upwards the pair, are to a less or more extent, the funds also unwinding long “kiwi” positions as risk-off sentiment strikes back ahead of the new political drama of “debt ceiling.”

Technical outlook on EUR/NZD

At the time of writing the pair is trading at 1.6359, up 0.57%, not far away from its daily high. The FXstreet.com Trend Index shows the pair to be slightly bullish and overbought in the 15 minutes timeframe. Daily pivot point support can be found at 1.6184, 1.643, 1,6103 and resistance at 1.6416, 1.6457 and 1.6500, respectively.

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