A world of Trading assets

Blog

It’s the mother of all markets, making all other types of trading possible. Every three years the Bank of International Settlements releases its survey of foreign exchange and OTC derivatives markets.
A world of Trading assets

GBPNZD & EURNZD Correlating Accurately

Authored by TD Markets
24.08.2023
Technical Analysis
0
3 min
GBPNZD & EURNZD Correlating Accurately

In the intricate world of forex trading, keen observers have noticed a noteworthy correlation between the GBP/NZD and EUR/NZD currency pairs. This correlation is catching the attention of traders, as it presents a potential avenue for short opportunities. By delving into the relationship between these pairs and considering the broader market context, traders can position themselves strategically for potential gains.

The EURNZD Performance 

Seeking a brief opportunity. Price has been moving higher on greater time periods, indicating a positive trend. Essentially, I'm hoping for a technical retracement. At price point 1.83786, the daily period has shown some weariness. On the Fibonacci retracement tool, our take profit zone is located at the 50.00-point level. Looking for an entry following another lower bottom at price point 1.81903.

GBPNZD & EURNZD Correlating Accurately

The GBPNZD Performance 

Price has been rising over longer time periods, and it presently corresponds to the EURNZD. While seeking another brief opportunity, weariness and resistance may be visible at shorter intervals. To obtain a lower bottom, we must break below the current low that has formed. At 2.13573, the price must break through. The goal price is set at 2.11793, which corresponds to a Fibonacci retracement of 38.3 on the Fibonacci retracement tool.

GBPNZD & EURNZD Correlating Accurately

The AUDCHF Performance

Higher time periods have demonstrated that this combination has a substantial degree of disadvantage. I'm looking for a possible bounce and long on the daily and H4 timeframes. Although an inner and outer trend has broken, resistance at price point 0.56779 must still be overcome. A daily period would be an ideal candle closure for entrance, but an H4 would also work. More price action follow-through is always provided by longer time horizons.

GBPNZD & EURNZD Correlating Accurately

Read More: GBPJPY & NZDUSD Target Reached

Final Thoughts On Today’s Analysis 

The correlation between the GBP/NZD and EUR/NZD currency pairs presents traders with an intriguing opportunity to explore short positions. By analysing the factors influencing their movements and closely monitoring market developments, traders can make informed decisions that align with their trading strategies. As with any trading endeavour, careful consideration of risk management and staying updated with relevant news are crucial to navigating the forex market successfully. Watch our YouTube channel for more analysis. 

Authored by TD Markets
24.08.2023
Technical Analysis
0
3 min
TD Markets

Africa’s Most Trusted Broker

TD Markets provides you with access to the next-generation trading platform that brings a wealth of new features and enhanced performance to your trading experience, MetaTrader 5. This platform, easily accessible from any device, elevates your trading experience by providing a range of advanced features, including Advanced Trading Tools, Faster Execution, Expanded Market Access, Automated Trading, Depth of Market, and Enhanced Security.
Why TD Markets