EUR/NZD Carves Double Top Formation into Resistance

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EUR/NZD Daily Chart

EUR/NZD Price Chart - Daily Timeframe

Technical Outlook: EURNZD has been trade within a proportions of a extended ascending pitchfork formation fluctuating off a 2016 / 2017 pitch lows with cost reversing off together insurgency this month. As it stands now, a span is staid to post and outward week annulment candle off insurgency (bearish) with a mangle of a new lows risking a double tip relapse targeting 1.6881-1.6930. Note that ongoing movement dissimilarity serve highlights this hazard and nonetheless a broader concentration stays higher, a near-term risk is for a improvement lower.

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EUR/NZD 240min Chart

EUR/NZD Price Chart - 240min Timeframe

Notes: A closer demeanour during cost movement highlights near-term connection support here during 1.7124 with a mangle / tighten next this threshold indispensable to countenance a double tip breakdown. Such a unfolding targets initial support objectives during a monthly open during 1.7009 corroborated by a 61.8% retracement during 1.6923 and a totalled pierce into 1.6881. Note that a median line also converges on this threshold streamer into a tighten of a month (area of seductiveness for probable depletion / prolonged entries).

Bottom line: I’ll preference vanishing strength while next a weekly open during 1.7332 with a crack above 1.7409 indispensable to countenance resumption of a broader up-trend. Ultimately, a pierce reduce towards constructional support would offer some-more auspicious long-entries. Keep in mind we have a recover of pivotal Eurozone acceleration and practice information on daub this Thursday.

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– Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex or hit him during mboutros@dailyfx.com

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