EURAUD and EURNZD: EURNZD rising above 1.77000 level

• Last week, the EURAUD fell to 1.59980 at a 12-month low. 
• During this morning’s Asian trading session, EURNZD rose to 1.77470, forming a new July high there.

EURAUD chart analysis

Last week, the EURAUD fell to 1.59980 at a 12-month low. After a short consolidation, the pair gets that support and begins a recovery to the 1.61500 level. In that zone, we tested the EMA200 moving average, which this time was stronger and sent us on a pullback to the 1.60200 support level. At the market’s opening this week, EURAUD creates a bullish gap, initiating a potential move to the bullish side.

We first moved back above the EMA200 moving average, only to see a push to the 1.61775 level this morning. After that, the pair pauses again and begins to pull back one more time below the EMA200. Now we need the formation of a higher low compared to the previous one in order to initiate a new bullish consolidation. Potential higher targets are 1.61500 and 1.62000 levels.

EURNZD chart analysis

During this morning’s Asian trading session, EURNZD rose to 1.77470, forming a new July high there. We stopped at that level, after which the pair began to retreat to the 1.76950 level. A little lower and, we will test the EMA50 moving average support. If it doesn’t hold up either, EURNZD will have to start a further retreat. Potential lower targets are 1.76500 and 1.76000 levels.

Additional support in the 1.76000 zone is the EMA200 and the weekly open price at 1.75866. We need positive consolidation and staying above the daily open price for a bullish option. If we succeed in this, we can hope for further recovery to the bullish side. Potential higher targets are 1.77500 and 1.78000 levels.