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.

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.

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.

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.