EUR/NZD: Sellers Find a Strong Hinder; Does the Bull Take over?

• EUR/NZD has found a horizontal resistance heading towards the swing low.
• The simple moving average 30 has been working as a resistance.
• The H1 chart looks bearish making a bullish correction.
• Intraday minor charts may get bearish later.

EUR/NZD -Technical Analysis- H4 chart

The chart shows that after being bearish, the price had a bounce at 1.77380. It made a bullish correction upon producing a bullish engulfing candle. However, it has found its resistance around 1.78550. Since then, it has been bearish again. However, the price is approaching at the last swing low. Thus, the minor charts’ sellers may consider taking out profit around this level. A bearish breakout at the support may generate bearish momentum and drive the price towards the South again. The price may find its next support around 1.76000.

On the contrary, if the support level holds the price and ends up producing a bullish reversal pattern, the buyers may keep their eyes to go long above 1.78550. It would be considered as a neckline breakout of a double bottom.

Price Action Analysis- H1 Chart

The chart shows that the price has been obeying a bearish trend line. At the last rejection, it consolidated there for a while and made a move upon producing a bearish engulfing candle. It continued its move for quite a while and had a bounce t 1.77380. The pair then made a bullish move and was traded around 1.78550. As expected, the pair got bearish again and headed towards the swing low. As of writing, the pair has been looking for its next direction. A breakout below the support may drive the price towards the South. The price may find its support around 1.76500.

On the other hand, if the price continues to move towards the North and ends up making a breakout at the trend line, the buyers may look to go long in the pair. As it seems, it may take time to happen.

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

Contact and follow Tareq on Twitter: @tareqfpn