The EUR/NZD has been supported above the important level. 1.7055 is the W l3 and historical support pivot.
EU Parliamentary elections had no effect on EUR crosses so the focus is on the NZD fundamentals. As the EU trade balance continued to expand positively last week, we did see flash manufacturing continued to contract in Germany, along with its slowing business confidence. New Zealand has on the other hand seen a contract in Global Dairy Trade Index for the first time this year, but more so, the prices of other main exports such as Lumber has been contacting significantly in the last year, whilst Live Cattle has continued to reduce since Late February. This is putting pressure on NZD.
Technically, the pair is having a correction in uptrend and 1.7085-1.7100 is the POC zone where we should look for a potential bounce. Targets are 1.7139 and 1.7160. If bulls want to proceed with uptrend momentum, then 1.7055 should hold.
