Trend: Bullish
Key support levels: 1.7700, 1.7640
Key resistance levels: 1.7870, 1.8170
Price Action:
It just seems like the EUR/NZD has been forming a triangle pattern since January of this year. Price continues to reject the uptrend trendline suggesting bullish dominance, while extra more buying pressure might send the price up, towards the downtrend trendline.
Fibonacci applied to the strong uptrend, which occurred between December 2019 - March 2020, shows two important levels. First is the support at 1.7570, which is a 61.8% Fibonacci retracement level. It has been rejected cleanly on September 22. Since then, price has been rising consistently and recently rejected cleanly the 200 Simple Moving Average. These rejections of support indicators do look very bullish, especially in the long run due to the analysis of the daily chart.
In order to understand what could be the upside potential, we use another Fibonacci level, which is 38.2% Fibs at 1.8170 area. It corresponds to the 227.2% Fibs applied to the corrective wave down where EUR/NZD rejected the 200 SMA, as well as the simple downtrend trendline. Overall, the trend will remain bullish as long as daily closing prices stay above the 1.7616, which is the low produced upon rejection of the 200 SMA. For now, EUR/NZD is expected to continue rising, potentially by 400-500 pips to the upside.
Key support levels: 1.7700, 1.7640
Key resistance levels: 1.7870, 1.8170
Price Action:
It just seems like the EUR/NZD has been forming a triangle pattern since January of this year. Price continues to reject the uptrend trendline suggesting bullish dominance, while extra more buying pressure might send the price up, towards the downtrend trendline.
Fibonacci applied to the strong uptrend, which occurred between December 2019 - March 2020, shows two important levels. First is the support at 1.7570, which is a 61.8% Fibonacci retracement level. It has been rejected cleanly on September 22. Since then, price has been rising consistently and recently rejected cleanly the 200 Simple Moving Average. These rejections of support indicators do look very bullish, especially in the long run due to the analysis of the daily chart.
In order to understand what could be the upside potential, we use another Fibonacci level, which is 38.2% Fibs at 1.8170 area. It corresponds to the 227.2% Fibs applied to the corrective wave down where EUR/NZD rejected the 200 SMA, as well as the simple downtrend trendline. Overall, the trend will remain bullish as long as daily closing prices stay above the 1.7616, which is the low produced upon rejection of the 200 SMA. For now, EUR/NZD is expected to continue rising, potentially by 400-500 pips to the upside.