EUR/NZD 4H Chart: Set for more gains
The Euro is surging in a very steep angle against the New Zealand Dollar. The surge began, as the support of a channel up pattern was strong enough to force the pair higher. In addition, the appreciation of the Euro against the Kiwi does not seem to slow down almost at all, when it faces various resistance levels.
Most recently the pair slowed down the surge to find more support in the weekly R2 at the 1.7048 mark. The next target for the rate in the case of a surge should be the 1.72 mark, where the weekly R3 is providing resistance.
Most likely that level will be reached soon, as even the speculative ascending patterns do not provide resistance below 1.72 level.
Most recently the pair slowed down the surge to find more support in the weekly R2 at the 1.7048 mark. The next target for the rate in the case of a surge should be the 1.72 mark, where the weekly R3 is providing resistance.
Most likely that level will be reached soon, as even the speculative ascending patterns do not provide resistance below 1.72 level.
Comment:
The EUR/NZD currency pair has not been reviewed for some time. However, there also have not been large changes occurring during that time.
The currency exchange rate has bounced off the most dominant resistance in the middle of November, which resulted in a decline down to the 1.7150 mark.
Afterwards the pair surged and bounced off the monthly S1 near the 1.74 mark.
However, in regards to recent development and near future, it is more important to mention that the pair is once more at the 1.7150 level, which is providing support.
A continuation of the decline of the rate is set to occur, when the support of the 1.7150 is passed.
The currency exchange rate has bounced off the most dominant resistance in the middle of November, which resulted in a decline down to the 1.7150 mark.
Afterwards the pair surged and bounced off the monthly S1 near the 1.74 mark.
However, in regards to recent development and near future, it is more important to mention that the pair is once more at the 1.7150 level, which is providing support.
A continuation of the decline of the rate is set to occur, when the support of the 1.7150 is passed.
Comment:
The large scale situation on the EUR/NZD pair has not changed. However, there has been one notable development, as the pair has formed a new medium term channel down pattern.
The channel has guided the pair down to touch the 1.68 mark, and the decline is likely going to continue. The reason for that is the fact that the pair has passed a strong support cluster from the 1.6930 to 1.6870 levels.
As that cluster has been passed, the next notable support level is located below the 1.67 mark, where a long term 61.80% Fibonacci retracement level is located at.
The large scale situation on the EUR/NZD pair has not changed. However, there has been one notable development, as the pair has formed a new medium term channel down pattern.
The channel has guided the pair down to touch the 1.68 mark, and the decline is likely going to continue. The reason for that is the fact that the pair has passed a strong support cluster from the 1.6930 to 1.6870 levels.
As that cluster has been passed, the next notable support level is located below the 1.67 mark, where a long term 61.80% Fibonacci retracement level is located at.
Comment:
We previously described the bounce off of a dominant resistance line on the EUR/NZD pair. Then a speculative short term channel down pattern was drawn, which was expected to be broken just as the previous medium term channel up pattern. Both of these events occurred in the past weeks.
Meanwhile, there is a more important factor to concentrate attention on. The pair has revealed the new medium size pattern. It has the shape of a descending channel, which is aimed at the lower trend line of the dominant pattern.
Most likely the pair will show interesting short term moves, as it goes through various support levels that are set to slow down the decline of the Euro against the Kiwi.
We previously described the bounce off of a dominant resistance line on the EUR/NZD pair. Then a speculative short term channel down pattern was drawn, which was expected to be broken just as the previous medium term channel up pattern. Both of these events occurred in the past weeks.
Meanwhile, there is a more important factor to concentrate attention on. The pair has revealed the new medium size pattern. It has the shape of a descending channel, which is aimed at the lower trend line of the dominant pattern.
Most likely the pair will show interesting short term moves, as it goes through various support levels that are set to slow down the decline of the Euro against the Kiwi.
Comment:
The common European currency has reached a dominant support line against the New Zealand Dollar. The encounter has resulted in a rebound.
The rebound, in accordance with the most dominant pattern should result in a surge of more than a couple of months. The reason for that is the fact that this rebound marks the end of a long term descent, which was expected and described in previous reviews of the currency exchange rate.
Regarding the short them traders should watch, as the pair should soon review a new medium term pattern, which is likely going to be an ascending one.
The rebound, in accordance with the most dominant pattern should result in a surge of more than a couple of months. The reason for that is the fact that this rebound marks the end of a long term descent, which was expected and described in previous reviews of the currency exchange rate.
Regarding the short them traders should watch, as the pair should soon review a new medium term pattern, which is likely going to be an ascending one.
The currency pair is about to reach the upper trend line of the most dominant ascending channel pattern near the 1.74 mark. The trend line is strengthened by the monthly R1 at the 1.7395 level. Due to that reason a change of the short and medium term direction can be expected.
However, the exact bounce off level is almost impossible to predict, as the long term trend lines usually show only approximate levels.