The NZ dollar has been resting in the recent trading days, after the rally that started on the end of the previous month. It is now moving between the 200 SMA at 1.037 and the 50 EMA at 1.02 (daily chart). The pair made a "bull-flag" pattern and it looks positive for additional risings. No doubt, that it is overbought and the possibility for correction is getting higher.
On the 4h chart we can see a triangle that means that the sellers and the buyers are about to meet somewhere around 0.785-0.79. The intraday chart sends signals for a possible bearish session, as a lower-highs pattern appears. In that case, we might see the pair falls to 0.77. However, the indication of the daily chart is stronger, and therefore there is no rush to look for declines at this point.
The volatility in Wall Street affects the EUR/USD, which is getting volatile as well. The support at 1.37 still lasts and the Euro is making efforts to make another bullish movement. However, the new disagreements about the European bailout plan disturb the currencies plans.
The pair EUR/NZD has been stamping for the last 5-6 trading days. The 20 EMA crossed the 50 EMA few weeks ago, and that was a positive sign for the EUR against the NZD. The 50 EMA is now supporting the pair at 1.72. The 200 SMA is a very strong support (1.77) which the pair has difficulties to break for almost six months. Every time it touched the 200 SMA it fell hundreds of pips, but now it looks like the buyers did not let it fall to strong. If the support at 1.72 remains and the EUR successfully breaks through 1.74, the pair might hit the 200 SMA again. Another positive signal for this pair is the fact that the lows have been getting higher since the pair reached the bottom on the beginning of August. Stochastic low levels increase the chances for a rising of the pair.
