Continued weakness in the New Zealand Dollar (NZD) against the Euro (EUR) drove prices to fresh lows around 0.5860 (1.7070) this morning, the Euro surprisingly on the front foot. Consumer sentiment in the Eurozone hit a record low and poor Manufacturing data Friday wasn’t enough to halt momentum the pair on its way to a Feb 2022 low. European authorities are investigating leaks on the Russian natural gas pipelines to Germany. Pressure issues were found on the Nord Stream and Nord Stream 2 pipelines which connect Russia to Germany’s massive industrial zone. Both these lines are not currently in use so are not affecting the gas supply but if the issue is some sort of sabotage things could escalate fast. A retest of the yearly low at 0.5770 (1.7330) is fast approaching, we think this should hold.
Current Level: 0.5867 (1.7044)
Resistance: 0.5950 (1.7320)
Support: 0.5775 (1.6800)
Last Weeks Range: 0.5898-0.5992 (1.6688-1.6953)