EURNZD possible down trend will be startThe EUR/NZD currency pair might be showing signs of starting a downtrend based on strong support in the daily time frame. Here are some key points to consider:
Support Levels: Identify the key support levels on the daily chart. If the price has recently tested and failed to break through a strong support level, it could indicate a potential downtrend.
Trend Indicators: Utilize technical indicators such as moving averages, MACD, and RSI to confirm the potential downtrend. A crossover in moving averages (e.g., 50-day below 200-day) or a bearish signal in MACD/RSI could support the downtrend hypothesis.
Candlestick Patterns: Look for bearish candlestick patterns like bearish engulfing, shooting star, or evening star near the support levels, indicating potential reversal.
Volume Analysis: Increased volume on downward moves and decreased volume on upward corrections can reinforce the likelihood of a downtrend.
Fundamental Analysis: Consider any recent economic data or news events impacting the Eurozone or New Zealand. Strong economic performance in New Zealand or weak data from the Eurozone could further support a bearish outlook for EUR/NZD.
Always ensure to use a combination of these factors for a more robust analysis and consider setting appropriate stop-loss levels to manage risk
