Hello Traders,
If you are a Euro bull then you are definitely deep in the blue and that should be, given the positive policy shift at the ECB. For starters, ECB is in the brink of announcing major monetary policy changes in the coming months and that will start with reduction in asset purchase. If they set a date and begin the process, then the Euro will rally. However, as thing looks like some officials in ECB are already worried about the strong common currency. If that is so, chances that some earlier decisions made by ECB will be put off till December, not October as anticipated.
I will advise for Euro shorts until after the meeting in October before trend resumption continues. In other news, as a major dairy player in the globe, the NZD benefitted from the strong rise of dairy prices in the biweekly dairy auction. From data, price rose 0.9% following a 0.3% rise a month earlier and this rise was the highest in 4 months.
Given this development, I will look to benefit from the positive swap by entering short. It looks like there is an explosion down anyway as I type this so, wait for a correction say 30 pips higher and short. The weekly chart is bearish with a sell signal while the daily chart is trending in the same direction.
Trade as follows:
Sell Limit: 1.63-1.632
Stop Loss: above 1.64
Take Profit: 1.52-1.55
Have a good trading day.

eurnzd weekly chart-20.09.2017

Source: Dalmas

eurnzd daily chart-20.09.2017

Source: Dalmas

5 thoughts on “EURNZD ANALYSIS FOR 20.09.2017”

  1. Daniel Chan - Forex.Today says:

    Thanks Dalmas for the head up 🙂 Potential 1000 pips move + positive Swap . a sweet dream position once in no risk position .

    1. Dalmas Ngetich - FOREX.TODAY says:

      Thanks Dan. These are your kind of trades I guess, the ones with positive swaps 🙂

  2. callahan says:

    Down to 157. Thanks Dalmas

  3. adamp says:

    Hi Dalmas,
    Great post, thank you! I am also watch this one carefully, I’m a lot like Dan, I love those positive swaps. Big risk event this weekend with the general election in New Zealand, the polls are showing that it will be very close. The Labour party are looking at making changes at the RBNZ that are expected to be with a more dovish tone, we could see a run up to 1.6450-1.65 or even a run up to 1.66 which that Daily 55 ema suggets. Cheers

    1. adamp says:

      Further to my post above I did forget to mention the small matter of the German election this weekend, although this one is pretty much a foregone conclusion. Cheers

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