The EUR/NZD is currently trading at a point of equilibrium between buyers and sellers. This can be seen technically by the fact that the pair is trading inside the kumo cloud, just at the kijun sen line, and its RSI
is trading around the 50 handle. We like to pay close attention to pairs that are trading at equilibrium since that is often the best point to enter the market in order to enjoy future imbalance in buying vs selling power. In the case of the EUR/NZD, our bias is clearly to the long side. We've had a big impulsive bull
wave, then followed it with a corrective bear
wave back to the 50-61.8 fib which have contained the selling and seem to indicate renewed bullish
pressure on the pair. In addition, the current structure of price action is one of an an ascending channel
, coupled with a couple of nice long wicked hammer
candles. Putting it all together then, we'd like to see a kumo break to the upside, backed by RSI
breaking the 40-60 consolidation zone to the upside, after going long our initial targeted area will be the 1.59800 handle.