EUR/NZD: H4 Finds a Confluence Resistance

• EUR/NZD has been bearish on the H4 chart.
• The SMA 30 has been working as a resistance along with a horizontal one.
• The H1 chart has been bearish trading around yesterday’s low.
• Intraday minor charts have been bearish.

EUR/NZD -Technical Analysis- H4 Chart

The chart shows that the price consolidated around the simple moving average 30 for a while. Then, it has started moving towards the South. As of writing, the current candle has been bearish. The sellers may go short in the pair from the value areas. The level of 1.76000 may hold the price as a support. However, it is very likely that the price may breach the level and head towards the downside further with good momentum.

The buyers may have to wait to find long opportunities here. Unless, it produces a bullish reversal pattern such as double bottom followed by a breach at the SMA 30, the bull may not come into play.

Price Action Analysis- H1 Chart

The chart shows that the price may get caught within a triangle. A down trending trendline resistance and the horizontal support at 1.76050 may make the pair be choppy.

The sellers may wait for the price to make a bearish breakout at the horizontal support to go short in the pair. The price may find its next support around 1.75350.

On the other hand, if the horizontal support produces a bullish reversal pattern and makes a breakout at the trend line, the buyers may look to go long in the pair upon having bullish reversal signal above the trend line. In that case, the price may find its resistance around 1.78200.

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

Contact and follow Tareq on Twitter: @tareqfpn