*Live market analysis of the EURNZD FX currency pair!*
Here is my mid-week technical analysis of the Euro vs New Zealand Dollar FX currency pair which is looking very good for new short positions to be added. I will talk you through my analysis and why I will be looking to short this currency pair.
As always, let’s start with the higher timeframes and look at the weekly timeframe price chart.
I can see a perfect weekly wick rejection candle of the price resistance zone around 1.71900. This zone has held strong since late last year and has acted as resistance multiple times in the past few years. The wick rejection candlestick is a good sign that sellers are apparent in the market at this level and any attempts to break above 1.71900 were swiftly stopped.
You can also see in this timeframe chart that price is now forming a nice channel which can often provide the best opportunities to simply sell at the top and buy at the bottom.
On the daily timeframe chart (above) shows this channel with the support and resistance zones marked on in blue. I have also marked on the lower trendline which has been supporting price on its most recent bullish run up to this resistance zone. This bullish trendline has now been clearly broken with some strong momentum.
If we now look at the 4hr timeframe chart, we can see the switch in near term trend and why I am looking to enter short on this FX currency pair.
This timeframe shows the trendline break with the big bearish engulfing candle on the 31st May. I have also marked on the new 4hr trend with consecutive lower lows and lower highs now made following the break of the TL. This is a very good indication of the trend reversing from bullish to a bearish bias.
In regards to short position entries, I will be looking to enter short positions on the 4hr lower highs down to the nearest price support zone at 1.67000. This zone is marked on the with the lower blue line on the chart above. Hopefully, as price makes its way down to this level, we see multiple pullbacks to scale in on the short positions to exponentially increase profits as the trade goes on.
The chart below shows my prediction for how price might move over the next few weeks.
You can track this trade live via the TradingView platform by clicking on the link below. I also have other trade examples on there for you to view.
Thanks for reading and I hope my analysis helps you learn to see how I monitor and view the FX currency markets. Please remember to do your own analysis, manage your own risk and only take trades you are happy with.
DISCLAIMER: None of the information posted on this site is to be considered investment/financial advice. Trading is high risk and you should only trade with money you can afford to lose.