EUR/NZD: Bear is about to Make a Huge Breakout

• EUR/NZD has made a strong bearish move about to breach a massive support.
• The pair trades below the simple moving average 30 on the H4 chart.
• The H1 chart looks bearish.
• Intraday minor charts have been bearish.

EUR/NZD -Technical Analysis- H4 chart

The chart shows that the price made a bearish move upon finding its resistance around 1.77000. The pair produced an evening star and headed towards the last swing low in a hurry. As of writing, the pair trades right at the level of 1.74850, a significant level, where the price reacted multiple times.

If the chart makes a breakout at the level, the sellers may look to go short in the pair and drive the price towards the level of 1.72450. On the contrary, if level holds the price as a support again and ends up producing a bullish reversal pattern, the buyers may push the price towards the North. The chart may find its resistance around 1.77000.

Price Action Analysis- H1 Chart

The chart shows that the price made a strong bearish move before finding its support around 1.75300. The chart produced a long bullish engulfing candle followed by another one. However, it found its resistance around 1.76150 and headed towards the South. On its way, it made a breakout at 1.74850. As of writing, the pair trades below the level. A bearish reversal candle may attract the sellers to go short from here. The pair may find its support around 1.73500.

If the price goes back within the support, the pair may get choppy. Nevertheless, a bullish reversal pattern such as double bottom may make the pair go towards the North.

As things stand with the pair, it seems that the bear is going to dominate in the pair or it may get sluggish if the support plays its role. Thus, sellers may keep their eyes on the pair to find out opportunities to go short in the pair.

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

Contact and follow Tareq on Twitter: @tareqfpn