EUR/NZD: Bear Moves to Break Fences

• EUR/NZD seems to have found its resistance on the H4 chart.
• The pair may produce a double top.
• A bullish trend line is in play on the H1 chart.
• Intraday minor charts have been bearish.

EUR/NZD- Technical Analysis-H4 Chart

The H4 chart shows that the price after making a long bearish move, found its support around 1.75400. It then made a bullish move. On its way, it made a breakout at the simple moving average 30. The price had a bearish correction and found its support right at the SMA 30. Upon producing a bullish engulfing candle, the price headed towards the North. However, it had its second rejection around 1.78500 and produced a bearish Hammer. Since then the pair has been heading towards the South. If the price breaches the SMA 30, it may find its support around 1.75500 again.

On the upside, if the SMA 30 holds the price as a support and produces a bullish reversal candle, the buyers may push the price towards the North. The price may find its resistance around 1.79500.

Price Action Analysis- H1 Chart

The chart shows that the price has been up trending by obeying a trend line. At the second bounce, it produced a bullish inside bar and headed towards the North in a hurry. The price then made bearish corrections. However, it did not come at the trend line’s support. As of writing, the price is approaching at the trend line. If the trend line holds the price as a support and produces a bullish reversal pattern, the buyers may push the price towards the North. The price may find its resistance around 1.78000.

On the  downside, a bearish breakout at the trendline’s support may drive the price towards the downside. The price may find its support around 1.75400 on the H1 chart.

The bear seems to be very active. However, it must continue and produce price action around the supports on the both charts to attract the sellers to sell the pair.

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

Contact and follow Tareq on Twitter: @tareqfpn