Today, we’ll be going over the Euro versus the New Zealand dollar with technical analysis starting on the daily time frame.
On the daily chart above, we can see that a new high was made on the 23rd of September when the price closed above the previous high of 1.77850. Looking at the fib tool plotted, we can see there was a double bottom on the deepest preferred level of retracement, the 78.6, proving that 1.75000 is a strong level of support where a higher low was formed.
Dropping down to the 4-hour chart, we can notice a falling wedge shown by the two trend lines drawn which are converging to one point which signals a potential bullish breakout.
Dropping down to the 1-hour chart, we can see price wicked into a previous level of support as well as the 61.8 fib level forming a hanging man. If this level holds as support, I’d expect further upside from here but if it does move below this level, the 78.6 fib level as well as a 3rd touch of the trend line would be the next place where price could potentially find support.
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