Wednesday saw Societe Generale recommended....>

FOREX: Wednesday saw Societe Generale recommended a long EUR/NZD position, with

an entry point at NZ$1.80, target at NZ$1.87 and stop at NZ$1.77.

- They noted that "a new risk-off phase could see EUR/NZD move beyond NZ$1.85,

likely reaching the NZ$1.90 resistance. We would therefore take profit in the

middle of this NZ$1.85-1.90 risk aversion range, with the premise being that the

EUR/NZD peak in any forthcoming spike would be lower than the peak in the second

half of March (on an intraday basis, the spot reached NZ$1.99 on 19 March, but

the daily resistance level was NZ$1.90). Since start-March, EUR/NZD's support

level has been just below NZ$1.77, suggesting that the spot should remain above

it as long as markets are not totally free of COVID fears. A move below this

level would strongly suggest exiting the trade. This trade would suffer from the

most optimistic risk scenarios, involving solid equity and commodity prices. In

this case, the optimism would most likely benefit high-beta currencies overall,

including the NZD, regardless of central bank dovishness."