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Eurnzdsetup

EURO VS KIWI (EUR/NZD) Mid Term Trade Strategy & PlanRBNZ Expectations Survey , which featured downgraded official cash rate and inflation estimates, the Kiwi gave a fresh bearish trigger in the Asian trading session. Real interest rate cut for the RBNZ decision this week has been boosted by this report, so it wouldn't be shocking if London session traders were to start positioning by today. Earlier on, the pair bounced off the support at their ascending channel and distance, but might still have some bullish momentum higher for another split. Nonetheless, a step past the top of the channel could see a limited upside at the resistance level of 1.7500 The economic schedule shows that the eurozone has ZEW Economic Sentiment figures up for release, and forecast expected good from Germany and the entire region. If it's for real then this cross-currency could fly higher, especially with risk aversion creeping in ahead of Trump’s trade speech. Moving averages reveal that EURNZD is safely in the bullish territory in short terms. Talking about the average volatility over the past 30 days that tells pair moves around 110 pips per day. Dip back to the channel support around 1.73313 could be a good long entry area, with a stop below the weekly S2 of pivot 1.72767 (around the previous low of Nov 4). I have a bullish bias and have a plan to enter (if we get chance) from the bottom of the ascending channel but as we can see there some levels which our arrows in the chart pointing out for potential reversal zone (PRZ) and one can jump in and out of the trade depending on how the market news which are concerned to this two currency releases and how it shifts in sentiment and price action for this cross pair throughout the remaining days of the week. Happy Trading!
Long
by Anatta0
EURNZD SEEMS TO BE READY FOR A MASSIVE DECLINEEURNZD has been in recovery mode for the past 10 months. The pair took off from 1.63323 in December 2018 low and climbed to as high as 1.76993 in October 2019. The daily chart above puts EURNZD's entire 2-month sell-off in 2018 and the 10-months recovery in an Elliott Wave context. The pair’s decline can easily be seen as a five-wave impulse. The pattern is labeled 1-2-3-4-5, wave 3 is the longest among the three impulse waves. The recovery looks like a textbook W-X-Y-X-Z triple three corrections. Waves W unfolded as an expanded flat pattern while wave X, Y, X, and Z can both be labeled as simple (a)-(b)-(c) zigzags. Once a correction is over, the larger trend resumes. Here, a sharp selloff from 1.79282 in October 2018 precedes the above-shown corrective recovery, so the larger trend is down. Also, note how the resistance level, wedge trend line, and 78.6% Fibonacci level discouraged the bulls in wave Z. This is another indication that the entire 5-3 wave cycle is complete. If this count is correct, last week's bearish reversal is the start of a major plunge, whose targets lie beneath 1.63323 in the long term. In my opinion, selling the rallies is a viable strategy as long as EURNZD trades below 1.76993 invalidation level. Instead of giving in to complacency, the bulls should take last week’s bearish reversal very seriously. Thanks for Reading! Veejahbee
Short
by Veejahbee
EURNZD Is Drawing a Pattern That Should Scare the BullsThe Daily chart reveals something that should make the bulls feel uncomfortable. It shows that EURNZD’s massive decline from October 2018 high at 1.79337 to December 2018 low at 1.63279 took the shape of a textbook five-wave impulse. The pattern is labeled 1-2-3-4-5. EURNZD Bears Remain in Control According to the theory, the impulses point in the direction of the larger sequence, and a three-wave recovery in the opposite direction follows every impulse pattern. This means that once the corresponding A-B-C expanding flat correction in wave (B) is over, another decline in wave (C) can be expected. The resistance area around 61.8% Fibonacci level and the blue box zone is where a bearish reversal is likely to occur. However, even if the bulls manage to lift the price of EURNZD higher, the bearish outlook remains valid as long as the high/starting point of wave (A) at 1.79337 is intact. If this count is correct, traders should not put too much trust in EURNZD bulls right now and start to take profit in the blue box, especially given that wave (C)’s targets lie below wave (A) low at 1.63279. Did you like this analysis? Kindly let me know in the comment.
Short
by Veejahbee
8
EURNZDon a daily in comments this has a big drop as very clear motive wave and perfect school correction. now that move downwards the way that is moving in those parallels seems that is printing a diagonal. so since it is a beginning after a correction im expecting a motive wave, and in those parallels that last drop its too big for anything else to be considered except leading diagonal. also that blue line looks like strong resistance which several times price bounced of it and now we r touching it with exhaustion in oscillating indicators and in overbought position. also that last touch on MA's 100 and 200 where they crossed aka dead cross, resulted with big drop and now we r again touching MA100 and looks like its gonna reject it again. this is for educational purposes so mind ur lot size! :)
by sharing_is_caring