Buying entry forming on EUR/NZD?

The EUR has been rebounding strongly on the back of being sold off for much of the year. With inflation at record highs and a cost of living and energy crisis, the currency has become extremely weak, even dropping below parity with the USD. However, in recent week, the EUR has begun putting in a bottom. The ECB last night decided to raise their official rate by 75 bps. which along with a dovish statement caused a sharp drop in the EUR.

On the weekly chart, the price has largely been in long term range with some exceptions relating to large economic events. Although, the price has been known to spike at various stages of economic volatility. The chart shows that the price has been quite choppy between the range of 1.4000- 1.8500.

The daily chart shows a potential double bottom that has been forming. The two bottoms are near 1.5700 and the neckline at approximately 1.7000. The price already broke through the neckline and is nearly ready to retest the area as support. If the price can bounce off the neckline, it may have a primary target at 1.80, and then a secondary target of 1.8500. Waiting for ether a strong rejection candle or a consolidation near the neckline may provide a significant risk reward of near 3.5 or higher.

With inflation data the ECB still providing important information there may be some headwinds for the EUR as the region continues to deal with inflation.