EUR/NZD Buy Opportunity

As you can see, EUR/NZD is trading near the 50% Fibonacci Retracement level and inside a falling wedge formation.

Quick tip: Most of the time, DXY is positively correlated with GBP/AUD, GBP/NZD, EUR/NZD, and EUR/AUD.

If you look at DXY, it is also trading inside a short-term falling wedge formation, and if it manages to break out to the upside, we may see a similar move on EUR/NZD.

Our first target will be the 38.2% Fibonacci Retracement at 1.68838. Breaking 1.68838 will push the price towards the 50% Fibonacci at 1.69374 and the 61.8% Fibonacci at 1.69911. However, keep in mind that long term we are still bearish on DXY, thus there is a very high probability that DXY will not reach the beginning of the falling wedge which will definitely have an impact EUR/NZD and prevent it also from reaching 1.71647.

Hence, close half of your position at the 1.6937 and keep the other half open towards higher levels with your SL at entry. Good luck!