EURNZD - Technicals Pointing to the Downside
EURNZD is currently at strong supply zone with price action here indicating slowing bull momentum/incoming bearish reversal (dojis)
The strong upward move followed a phase of consolidation/accumulation after NZD interest rate news/coronavirus fears.
I am expecting price to drop to meet the descending trendline. We may see a break or bounce scenario here. Should we break this zone we may see further decline to the previous support at the 1.68000 psychological level.
HOWEVER! We must take the fundamentals into account as continued weakness in NZD may result in a further rise. A correction does appear due though and an initial gap fill (40 pips) from this week's market open is likely. A weak Euro may offer the necessary bearish momentum we need for this trade.
Markets are mad at the moment so take this with a pinch of salt.
The strong upward move followed a phase of consolidation/accumulation after NZD interest rate news/coronavirus fears.
I am expecting price to drop to meet the descending trendline. We may see a break or bounce scenario here. Should we break this zone we may see further decline to the previous support at the 1.68000 psychological level.
HOWEVER! We must take the fundamentals into account as continued weakness in NZD may result in a further rise. A correction does appear due though and an initial gap fill (40 pips) from this week's market open is likely. A weak Euro may offer the necessary bearish momentum we need for this trade.
Markets are mad at the moment so take this with a pinch of salt.
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