EURNZD Technical Analysis (27th Feb.)

EURUSD may struggle to stay above 1.05 for long as market dynamics shift. Concerns over a US economic slowdown have led to a slightly more dovish outlook for the Federal Reserve. The currency pair's direction will depend on future Fed and European Central Bank (ECB) policy moves and potential EU tariffs. Analysts expect tariffs to take effect in April, adding pressure on the euro. Currently, EURUSD is trading within a 1.0450–1.0530 range. Month-end portfolio adjustments could trigger some selling significantly, as eurozone equities have outperformed US stocks.

EURNZD – D1 Timeframe

At the far left of the attached price action chart on the daily timeframe chart of EURNZD, we see the initial supply zone followed by an SBR pattern, the peak of which was the rejection from the supply zone. The presence of trendline resistance at the newly formed supply region is the basis for the bearish sentiment.

EURNZD – H4 Timeframe

The 4-hour timeframe chart of the EURNZD pair's price action further reveals that the supply zone overlaps the 88% Fibonacci retracement level, with the liquidity from the recent high already swept. In this case, the overall sentiment aligns with the lower timeframe price action.

Analyst's Expectations: 

Direction: Bearish

Target- 1.81995

Invalidation- 1.85167

CONCLUSION

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