Market NewsTechnical Analysis

EUR/NZD: A Significant Resistance is in Play

  • EUR/NZD made a bullish move upon finding its support at the SMA 30 on the H4 chart.
  • The pair trades around a significant resistance.
  • The H1 chart looks bearish breaching today’s low.
  • Intraday minor charts have been bearish.
EUR/NZD H4 Chart
EUR/NZD H4 Chart

EUR/NZD -Technical Analysis- H4 Chart

The chart shows that the price consolidated around the simple moving average 30 and produced a bullish engulfing candle. The price then headed towards the North in a hurry. The chart produced a bearish engulfing candle right at 1.76200. As we can see, it has been a significant level, where the price reacted several times earlier. The buyers may wait for the price to make a breakout and go long upon having bullish reversal signal. The price may find its resistance around 1.77000.

On the downside, if the price breaches the SMA 30 and produces a bearish signal, the sellers may go short and drive the price towards 1.74000. Notably, the level of 1.74000 has been an extremely significant level of support.

EUR/NZD H1 Chart
EUR/NZD H1 Chart

Price Action Analysis- H1 Chart

With slight adjustment, the chart shows that it has found its resistance around the resistance of the H4 chart as well. However, the H1 chart looks very responsive. It has been heading towards the South with a good bearish momentum. It may continue its move towards 1.75000. A bearish breakout at that level may drive the price towards the South further.

On the contrary, if the price finds its support and makes a bullish breakout at the swing high, the pair may resume its bullish journey. In that case, it may find its resistance around 1.76700.

Considering both charts, it seems that buyers are to keep an eye on the price action around 1.76200-1.76250 zone. A strong bullish move around this level may make them go long in the pair and push it towards the upside further. Otherwise, it may get choppy on the H4, but may end up offering some good entries on the H1 chart.

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

Contact and follow Tareq on Twitter: @tareqfpn

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