EUR/NZD Potential Bearish Continuation from Order BlockAnalysis Summary
Resistance Zone and Strong Highs: The chart shows multiple resistance levels at 1.8098, 1.8155, and 1.8224. These areas could act as selling zones if the price retraces upwards, with the closest resistance zone around 1.8098 being the immediate focus.
Change of Character (CHoCH): A CHoCH near the 1.8098 level indicates a potential shift in market sentiment from bullish to bearish. This level could now act as a barrier if the price attempts a short-term retracement, reinforcing the bearish bias.
Support and Weak Low: The chart shows a weak low around 1.7969, which is a potential downside target if the bearish trend continues. A break below this level would further confirm bearish momentum.
Break of Structure (BOS): The recent BOS to the downside indicates a bearish trend structure, suggesting that sellers are in control.
Potential Scenarios:
Bearish Continuation from Resistance Zone: If the price retraces to the 1.8098 resistance zone and encounters selling pressure, it could initiate a bearish move toward the weak low at 1.7969. A break below this low could extend the downtrend.
Short-Term Retracement: If the price breaks above 1.8098, it could head toward the next resistance at 1.8155 or even 1.8224, though this would be less likely given the current bearish structure.
Conclusion
EUR/NZD is showing a bearish bias, with potential resistance around 1.8098 that could act as a reversal point for a continued downward move. Traders may look for short opportunities near this resistance, targeting 1.7969 as the initial downside target. Monitoring the reaction around 1.8098 will be key to confirming the next directional move.
