The Euro rally continues driven by stronger GDP growth and stronger PMI data. Meanwhile, the Fed cautions a further rate hike.
Trading EURNZD started off as on a 4-hour technical setup, but I have decided to hold onto this longer in anticipation of further Euro strength. This is a heavily annotated chart so I recommend clicking for expanding into a full page view.
Originally, I was looking at this as a resistance turned support level. The last wave of sell off failed to breach the previous low and I got in on the rally after a retracement back to the top of that initial resistance level. Seeing a quick bullish candle, I got in as it provides the earlier indication that this breakout is bound to be confirmed.
Trading plan ahead:
Price broke through another key price level at the 1.59~ mark and seems to be holding up. Two bearish bars failed to make any significant sell off and resulted in this pair stalling for the past while. Provided the 1.59~ resistance level holds up, I see no reason not to continue riding the rally while adjusting my stop loss under this level accordingly.
Also, there is a string of Bank of England releases tomorrow morning. Given the strong positive correlation in the Euro and Pound, any further bullish signals in the Pound should transfer nicely into the Euro as well.