*The EURNZD has been stuck in a wide range lately as the European reserve bank wants to avoid having 2 weak currencies in Europe, following the Brexit GBP vote.
*The EUR has been weak lately in comparison to the NZD , and that is strongly the results of the New Zealand Reserve Bank keeping their inflation as low as possible , resulting in a strong NZD
*Dr McDermond , assistant Governor said in his speech that inflation is expected to rebound in December quarter and be at the bottom of the targeted range.
*The bank of New Zealand will continue to monitor developments in the drivers of inflation as the try to keep it between 1% and 3% on average.
*Weakness in the inflation of New Zealand attributes to global developments that has seen the NZD goin high.
*At the moment , being bearish on the EURNZD would be a good way to the some pips in your wallet , as its currently sitting on MM3 , coming off MR1.

EURNZD daily

The current price is just below MM3 , and we see that at the beginning of the October month, bull bought the pair up to MR1 , where the bears were sitting patiently waiting. Bears entered the market and sold the pair from MR1 down to MM3 and I believe they will continue selling it to the bottom of the range S1 ...as we see the 21/55 EMAs has decreased in speed and we previously saw our 5/8 cross, indicating price going down. We can also wait patiently for the 21/55 to cross as the pair is currently sitting on our previous support.

EURNZD H4

The market is currently below the 21/55 EMAs , indicating a bearish momentum. I expect the markets to break though MM3 , and come back to test the new resistance and continue going down.

EURNZD h1

if the pair breaks thourgh our previous support and comes back to retest the new resistance. We can fib the move and look at our M15 and M1 for entry fib levels.

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