EUR/NZD Analysis: Cup and Handle Pattern Suggests Potential Breakout

The forex pair EUR/NZD is gaining attention as a potential cup and handle pattern emerges on the weekly chart. Traders are closely watching this pair as it approaches a key breakout point, signalling a possible bullish move in the coming weeks.

Current Price and Resistance Levels

The EUR/NZD pair is currently trading around 1.8423 NZD and testing the critical 1.84–1.85 NZD resistance zone, a level that has consistently acted as a ceiling since August 2023. A breakout above this area could pave the way for a rally towards the 1.90 NZD level in the first quarter of 2025, aligning with the highs recorded during the COVID-19 market volatility.

Support Levels to Watch

In the near term, traders can look to 1.8280 NZD, last week’s low, as minor support. A fall below this level could shift attention to 1.81 NZD, with 1.80 NZD acting as a psychological support level, where buyers may step in to halt any further decline.

MACD Indicator Suggests Strong Bullish Momentum

The MACD (Moving Average Convergence Divergence) indicator is showing strong bullish momentum, with the MACD line breaking above its most recent high from August. This technical development further supports the potential for a breakout in the near term, adding confidence to the bullish outlook for the EUR/NZD pair.

Summary: Key Levels and Outlook for EUR/NZD

The EUR/NZD pair is at a critical juncture, with the 1.84–1.85 NZD resistance zone acting as the key level to watch. A successful breakout could see the pair rally towards 1.90 NZD, while downside risks may target support at 1.8280 NZD, 1.81 NZD, and 1.80 NZD.

Traders should also monitor the MACD indicator, which currently signals bullish momentum and supports the case for an imminent breakout.