Always interesting to consider a currency pair where both have seen recent elections, and even more so when both are indecisive, and in this case the EUR/NZD makes for interesting reading. And in many ways can be considered a game of two halves, with selling of the NZD dominating overnight in Asia and the Far East, before euro bearish sentiment then prevailed taking the pair lower and back to trade around the volume point of control at 1.6310, and of course adding this price action together on the 60 minute chart then creates a doji candle of indecision – not surprising given the results with both elections failing to deliver a clear mandate.
Of the two, the NZD now looks the weaker and likely to continue trading with bearish sentiment in the medium term, if and until there is a clear outcome and resolution of the hung parliament.
By Anna Coulling
Charts from NinjaTrader