The pair has now shifted its direction and we could potential see a nice a trade to the up side. Best is to wait for the pullback before getting yourself a nice entry.. We got a big divergence on the bigger timeframe as well. There's 2 possible trades, 1 short term and 1 long term.
Keep an eye out for EURNZD. It has dropped under the 1H 50 EMA.
As long as the 50 EMA holds as resistance, we have a go for a move back down.
Put your SL above the 1H 50 EMA with a little bit of space to it in case of volatility.
1.7480 is a major support, while this level is not broken, the Midterm wave will be uptrend.
The RSI bounced from the resistance #1 at 80 and it prevented price from more gains.
The RSI uptrend #2 is broken, so the probability of beginning of downtrend is increased.
Price is below WEMA21, if price rises more, this line can...
A potential big drop is currently imminent on EUR/NZD.
*Important: To enter this move, wait for the breakout of 1.77 and the resistence under it. If it does not break this level, then this trade is invalid.
Once broken and the resistence found underneath it, it can go anywere near 1.74
EURNZD have rallied quite sharply from past few weeks, i am expecting it to retest the highs around 1.7470 area. Since momentum is still intact with the price action so i would recommend to play long.
Have a great weekend!
EUR/NZD testing the downtrend line and seems like the upside is limited and a possible correction is setting up. Short term momentum indicators support the view as well. If it forms a linear compression here, i'd recommend to look for sell setups for a target to 1.7100 or so.