2026-10-23 Readings lean bearish
EUR/NZD Faces Downward Pressure Amid Bearish Momentum and Key Support Tests
EUR/NZD is currently trading at 1.96868, reflecting a 0.48% decline over the past 24 hours. The pair is exhibiting a clear downward trend on both the 1-hour and 4-hour timeframes, with momentum indicators suggesting continued weakness. Traders are closely watching key support levels as the pair has utilized 95% of its average daily range.
Trend and momentum
The technical structure for EUR/NZD is firmly bearish, with both the 1-hour and 4-hour trends pointing downward. Momentum is weak, as evidenced by the 1-hour RSI at 35.99 and the 4-hour RSI at 35.34, both nearing oversold territory. The price is currently trading below the 1-hour Bollinger Band, indicating strong selling pressure, though there is no Bollinger squeeze. With 95% of the average daily range already used today, further significant downside may be limited in the short term.
Key levels
Key levels to watch include today's low at 1.96792 and the previous day's low (PDL) at 1.96734, which also aligns with the 4-hour low. A break below these levels could signal further bearish continuation. On the upside, resistance is found at today's high of 1.97636 and the previous week's low (PWL) at 1.97677. A push above these levels, followed by the previous day's high (PDH) at 1.97882, would be needed to shift the immediate bearish bias.
News and events this week
This week, the focus for the Euro will be on the Flash Manufacturing and Services PMIs scheduled for Friday, October 23, which will provide insights into the region's economic health. For the New Zealand Dollar, market participants are looking ahead to the RBNZ Interest Rate Decision next week on October 28, following recent CPI data releases. These events could introduce volatility and influence the pair's direction.
What would push it higher
If EUR/NZD can find support around the 1.96734 level and momentum indicators begin to diverge positively, we could see a corrective bounce. A sustained break above the 1.97677 resistance would be required to confirm a shift in momentum.
What would push it lower
If selling pressure persists and the pair breaks decisively below the 1.96734 support level, it could trigger further downside. Continued weakness in Eurozone economic data could exacerbate this move.
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