After reaching a high around the 1.85 zone, FX:EURNZD initiated a correction that eventually settled near the 1.75 zone. Throughout the end of October and all of November last year, the pair formed a lower high around the 1.82 zone. Subsequently, following the formation of a double top pattern, the pair breached below the neckline and the rising long-term trend line, ultimately revisiting the 1.75 zone.
In December, there was a retest of the broken trend line, and after another examination of the 1.75 level, the pair experienced a rise. However, this time, it encountered significant resistance at the crucial confluence level of 1.79 before retracing back to 1.75 once more. Taken together, these movements suggest mounting selling pressure and long-term distribution in the market.
Considering these cumulative factors, it's plausible to infer that the pair may be poised for a substantial decline. A drop of 1000 pips doesn't seem out of the realm of possibility, given the current setup and historical patterns. The confluence of technical indicators and price behavior underscores the potential for a significant downturn in the pair's value. Thus, traders may find it prudent to closely monitor these developments for potential trading opportunities aligned with the anticipated downward movement.
Comment
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EurNzd broke under 1.75 Stabilization under this level would expose 1.7150 as the first target for bears