EURNZD Analysis:
Technical Analysis:
1) Price approaching 200 MA for possible rejection to the downside.
2) Price approach major fib level 50 for strong trend down on rejection.
3) Price touching down trend line.
4) Price losing momentum on 4 hour and 1 hour.
5) Price hitting a previous lower low.
6) The potential drop may be in equal length of the previous swing low.
Fundamental Analysis:
1) NZD news is primarily bullish for the week with another decrease for EUR pairs.
This analysis accounts for counter fundamental trading as this pair was chosen due to the bullish NZD news. Instead of rejection, the price 1.67300 is a critical zone I need this pair to pass.
Technical Analysis:
1) Price approaching 200 MA for possible rejection to the downside.
2) Price approach major fib level 50 for strong trend down on rejection.
3) Price touching down trend line.
4) Price losing momentum on 4 hour and 1 hour.
5) Price hitting a previous lower low.
6) The potential drop may be in equal length of the previous swing low.
Fundamental Analysis:
1) NZD news is primarily bullish for the week with another decrease for EUR pairs.
This analysis accounts for counter fundamental trading as this pair was chosen due to the bullish NZD news. Instead of rejection, the price 1.67300 is a critical zone I need this pair to pass.
Comment:
Since price did not reject off trend with proper candlesticks formations, this trade was not taken. However, the red line with past strong wick rejections offered a possibility of another short. With strong NZD news coming next week this trade may have more promise if either it breaks or reject.