Market NewsTechnical Analysis

EUR/NZD: A Bearish Trend Line is in Play, What Next?

  • EUR/NZD has been bearish on the H4 chart.
  • The pair trades below Simple Moving Average 30.
  • A bearish trend line has been working as resistance.
  • Intraday price action has been bullish.
EUR/NZD H4 Chart
EUR/NZD H4 Chart

EUR/NZD- Technical Analysis-H4 Chart

The pair has been down trending by obeying a bearish trend line. It had several rejections at the trend line’s resistance. At the last rejection, it headed towards the downside with decent momentum and made a new lower low. The price found its support around 1.79400 and made a bullish correction. It found its resistance around 1.80850 and produced a double top. At the second rejection at the horizontal resistance, the price headed towards the South again. As of writing, the price has been heading towards the upside to make a bullish correction. Notably, it has bounced right at the last swing low. Thus, a breakout above the SMA 30 may push the price towards the trend line’s resistance.

However, on the downside, if the chart produces a bearish reversal pattern at the SMA 30, the pair may head towards the downside and make a new lower low. It may find its support around 1.77700.

EUR/NZD H1 Chart
EUR/NZD H1 Chart

Price Action Analysis- H1 Chart

The chart shows that the price consolidated around 1.79200 and produced a bullish engulfing candle. It then came down again at the support and produced another bullish candle. Since then it has been heading towards the upside. The buyers may keep their eyes on the chart to go long upon having bullish reversal candle at the value areas. The price may find its next resistance around 1.80700.

The H4 chart looks bearish-neutral. On the contrary, the H1 chart looks good for the buyers. The pair may make a bullish move on intraday charts. However, major charts’ traders may keep their eyes on the pair to go short from value areas. Thus, it may get bearish again and continue its move towards the downside.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn

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