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Expect EURNZD to continue unwinding
EURNZD broke to a 1-year low following today's rate hike from RBNZ. But when you think about the cash rate between these two (and they have gone opposite ways) this shouldn’t come as too much of a surprise. With ECB paying 0.15% and RBNZ paying 3.25% we can expect money to continue flowing from Europe to New Zealand to cash in on the differential. With EURNZD breaking key support at 1.575 and sitting at annual lows I expect this key level to cap as resistance as price trades in liken with 2 bearish channels. We have key support levels at 1.523 and 1.508, with the projection from the 2 channels targeting around ... (full story)
