- EUR/NZD trades around the SMA 30’s resistance on the H4 chart.
- The pair may end up producing an Evening Star here.
- The H1 chart has been on consolidation.
- Intraday minor charts have been choppy.
EUR/NZD -Technical Analysis- H4 Chart
The chart shows that the price after making a bearish move and breaching the simple moving average 30’s support traded below it for quite a while. The price then made a bullish correction upon producing consecutive bullish candles. The chart then produced an Inverted Hammer. As of writing, the price has been choppy. However, if the current candle comes out as a bearish engulfing candle, the sellers may go short in the pair and drive the price towards the South. The price may find its support around 1.76200.
On the contrary, if the price breaches the SMA 30, the buyers may wait for the chart to confirm the breakout followed by a bullish reversal candle to go long in the pair. The price may find its resistance around 1.79000.
Price Action Analysis- H1 Chart
The chart shows that the price trades around 1.78220, where the price reacted several times earlier. The sellers, of course, are going to wait for the price to come out from that consolidation zone and go short in the pair. The price may find its next support at the last swing low.
On the upside, if the price breaches the horizontal resistance, the buyers may wait for the price to produce a bullish reversal signal to go long in the pair. The chart shows that the price has enough space to travel towards the North. Thus, H1 chart looks good for the bull if it ends up making a breakout at that horizontal resistance.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn