- The pair made a bearish breakout at a bullish flag’s support on the H4 chart
- Simple Moving Average 30 has been working as resistance
- The H1 chart may produce a Double Top
- Intraday sellers may go short below 1.81950
EUR/NZD Trades below Bullish Flag’s Support
The pair made a bullish move earlier on the H4 chart. Last week, the price got caught within a bullish channel. Considering the last bullish move, it was a Bullish Flag. Traders must have waited for the price to make a breakout either at the channel’s resistance or at the support. The price made a bearish breakout at the channel’s support. As of writing, the pair trades below the breakout level. Thus, the sellers may keep their eyes on the pair to go short from value areas. Simple Moving Average 30 has been working as resistance as well. Thus, as far as the H4 chart is concerned, we may see Bear’s domination. Sellers may want to keep an eye at 1.79750, 1.78500 and 1.76800. These levels may hold the price as support.
The Bear Starts its Run on the H1 Chart
The H1 chart shows that the pair has been very bearish upon having a rejection around 1.84600. The price had a bounce at 1.81900 today and produced three consecutive bullish candles to make a bullish correction. The level of 1.82600 has been working as intraday resistance, where the price had a rejection to start its trading day today. Thus, the level may drive the price towards the South again. Intraday sellers may look to go short below 1.81900.
On the upside, if the price makes a bullish breakout at 1.82600, the pair may make a moderate bullish move on the H1 chart. The price may find its next resistance around 1.83000.
The H4 and the H1 chart both look very bearish. Sellers may keep their eyes on the pair to find short opportunities. As thing stands, the pair may remain bearish on the H4 chart for a while.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn