News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
Short-Term Decline Toward the “Double Bottom” Area Possible, Buy-on-Dips Bias Remains Intact
Summary:
EURNZD is currently trading around 1.9725, with short-term price action still appearing relatively weak. The pair may continue to decline and retest the previous double-bottom support region. However, from a medium-term structural perspective, the broader uptrend remains intact. Once the key support zone undergoes a secondary confirmation, the pair may resume its upward trajectory, with a buy-on-dips strategy remaining preferable.
Buy
PENDINGEURNZD
EXP
1.96500
Entry Price
2.00000
TP
1.94800
SL
1.99033 +0.01647 +0.83%
--
Point
PENDING
1.94800
SL
CLOSING
1.96500
Entry Price
2.00000
TP
Fundamentals
Recently, the Reserve Bank of New Zealand’s latest inflation expectation survey significantly reinforced market expectations that interest rates may stay higher for longer. Data showed one-year inflation expectations surging from 2.59% to 3.41%, while two-year expectations also rose to 2.53%, both above the RBNZ’s medium-term inflation target midpoint.
This suggests that despite signs of slowing economic growth in New Zealand, inflation remains sticky. Markets have therefore begun repricing the possibility that the RBNZ may either raise rates further or at least maintain restrictive policy settings for an extended period. This has provided short-term support for the New Zealand dollar and contributed to the recent pullback in EURNZD.
On the other hand, the European Central Bank also maintains a hawkish stance. ECB Governing Council member Kazaks stated that if rising oil prices continue feeding into inflation expectations, the ECB may need to increase borrowing costs further. Markets currently expect the ECB to deliver a 25-basis-point rate hike at its June meeting.
Overall, the current environment can be described as a “hawkish versus hawkish” dynamic between the euro and the New Zealand dollar. However, the sudden rise in New Zealand inflation expectations has had a stronger short-term impact on market sentiment, giving the NZD a temporary advantage.
That said, from a medium- to long-term perspective, continued ECB tightening should still provide underlying support for the euro, while the NZD remains more vulnerable to swings in global risk sentiment and commodity cycles. Therefore, the broader EURNZD structure should not be viewed as overly bearish.
Technical Analysis
From the daily chart structure, EURNZD entered a corrective phase after forming a temporary top at higher levels. Prices are currently trading near 1.9725, with momentum remaining biased toward consolidation and mild weakness.
However, it is important to note that the pair has not yet decisively broken below the previous key double-bottom support zone. Therefore, the current structure still appears more consistent with a technical pullback within a broader uptrend rather than a complete trend reversal.
The key downside focus remains on the prior double-bottom support zone around 1.9500 and 1.9580. If prices revisit this area and show signs of stabilization, the pair may form a classic “double-bottom confirmation followed by renewed upside” structure. This zone not only corresponds to previous major lows but also aligns closely with the medium-term ascending trendline support.
As long as prices remain above the double-bottom structure, the medium- to long-term bullish trend remains valid. On the upside, if the pullback confirmation completes successfully, EURNZD could retest the previous highs around the 2.0000 region.
From a technical indicator standpoint, MACD remains in a bearish momentum release phase, while RSI is also trading in slightly weak territory below neutral, indicating that the pair may still require additional downside probing in the short term. Therefore, it may be more appropriate to wait for prices to approach key support before looking for long opportunities.
Trade Recommendation
Trade Direction: Buy
Entry Price: 1.9650
Target Price: 2.0000
Stop Loss: 1.9480
Valid Until: 2026-06-13 23:55
Support Levels: 1.9667, 1.9621, 1.9580
Resistance Levels: 1.9798, 1.9859, 1.9940
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2026 FastBull Ltd
Home News Columns 7x24 Economic Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.