- EUR/NZD produced a Double Bottom on the H4 chart
- Simple Moving Average works as a support
- H1 Chart looks good for the buyers
- Intraday price action may get bullish later
EUR/NZD-Technical Analysis-H4 Chart
The chart shows that the price had a bounce at 1.82070 twice. At the second bounce, it produced a bullish engulfing candle followed by two more bullish candles. As of writing, the current candle has been bearish. The price may consolidate to find its support before making the next bullish move. A bullish breakout above today’s higher high at 1.83700 may push the price towards the North with good bullish momentum. The price may find its next resistance around 1.84600. Simple Moving Average 30 has been a support on the H4 chart. It may attract more buyers to go long in the pair.
On the downside, if the pair continues its correction but does not find its support to produce a bullish reversal pattern, the buyers may wait unless it finds a strong level of support. The sellers may skip the chart to trade since they would not get lucrative risk-reward on the H4 chart by selling it off.
Price Action Analysis-H1 Chart
The chart shows that the price has been in bullish. Upon finding its horizontal support at 1.82050, it produced a bullish inside bar and headed towards the North. On its way, it made a bullish breakout at 1.82920 and continued its bullish journey. The price had a rejection around 1.83700. It has been on bearish correction since then. The level of 1.82920 may hold the price as support and push it towards the North. The price may find its next resistance around 1.84300.
On the downside, if the price breaches 1.82920, the pair may extend its bearish correction. The level 1.82050 is going to be a key level to watch.
Both charts look good for the Bull. However, buyers must wait for the price to produce signal. The sellers on the other hand skip taking entries on the H4 and H1 chart. It means intraday price action may play a significant role to determine its direction.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn