EUR/NGN Tests Resistance at NGN1,551 Amid Central Bank Intervention

The Central Bank of Nigeria's intervention in the foreign exchange market has led to improved stability in the naira's trading dynamics. The country's foreign reserves have reached $54.08 billion, an 18-year high, indicating increased capacity to support the local currency and boosting market confidence.

According to technical analysis, EUR/NGN remains above its key short- and medium-term moving averages, indicating short-term bullish momentum. However, overbought conditions emerge as several oscillators suggest a pullback risk. The pair is expected to trade within a sideways band between NGN1,535 and NGN1,551 in the next 1-2 trading days.

The probability of further gains is 76%, while the chance of a downside move stands at 24%. If the pair breaks above NGN1,551, it could lead to a move toward the upper boundary of the prevailing short-term volatility band. On the other hand, a drop below NGN1,535 would expose the pair to increased downside risk.