EUR/NZD – Technical Analysis

Today, we’ll be going over the Euro versus the New Zealand dollar with technical analysis starting on the daily time frame.

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.

4 HOUR TIME FRAME

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.

1 HOUR TIME FRAME

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.

Remember to stick to your trading plan and always use the correct risk management. Subscribe to receive blog posts sent directly to your e-mail.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: