Looking on a weekly chart, it does look like the long lasting downtred has ended and a new uptrend emerged. However, if you look from a fundamental perspective, it is almost impossible to have the same opinion. There is no reason to see a massive surge in the Euro
that will last for months, because right now the currency to own is the dollar. On the other hand, the NZD still offers a nice carry and the rate cuts are probably over. However, considering how clean the chart looks, I think a bet is appropriate.
On the right side, the daily chart
offers a great buy setup, with price standing just at value on the weekly. Class A bullish divergence
after breaking the neckline of a H&S
and a nice reversal candle.
Because of the fundamental reasons I stated in the first paragraph, I wouldn't look for more than 1.79 - 1,80 in this pair. The stop is just below yesterday's low, and if that low is to break, I'm out.