Global macro overview for 19/09/2016:
Today's economic calendar lacks important macroeconomic news, but the Current Account report from the eurozone deserves attention. It is worth mentioning, that in the June update, the unadjusted account surplus jumped to 37.6 billion Euro, the highest so far this year and close to a record since the euro was launched. For this month market participants expect lower reading than a month ago (27.2 billion Euro vs. 28.2 billion Euro prior). In conclusion, the single currency bloc continues to struggle with an unwelcome strengthening in the Euro despite the efforts from the ECB.
Let's now take a look at the EUR/NZD technical picture in the daily time frame. After another lower low at the level of 1.4871, the market reversed and now is trading at 38%Fibo retracement of the last swing high. The 200 DMA has been violated, but 100 and 55 periods moving averages are still ready to provide the support for bulls. The larger time frame trend is rather sideways and horizontal than bullish but any rally attempt above the 1.4871 level might change the near-term outlook to bullish.
