EUR/NZD Key Points
- Higher time frame, horizontal resistance capping EUR/NZD on the daily.
- Daily trend line break confirming bears in control.
- Now looking for an intrday retest on the hourly to short again.
EUR/NZD Technical Analysis
Morning team,
Remember we recently had EUR/NZD capped by horizontal resistance on the daily? This was the daily chart and an extract of my thoughts at the time:
We know that higher time frame is king and while price has broken out of that trend line (no matter how you draw it), it is still capped by clear as day horizontal resistance.
From there, we shorted when price action got weak on the intraday charts and momentum ensured that we were paid out handsomely on the trade!
Well done to those of you that took the trade and know what I'm talking about, but if you're new here, then simply go back through the links above and the narrative will soon become clear.
Moving into the present and we can see that since rejecting off that daily horizontal support zone, EUR/NZD price has just continued lower and lower. The bears are fully in control of the market and this latest trend line break out on the updated daily below, just confirms this fact:
With the higher time frame chart pointing to further bearish price action, we now zoom into an intrday chart to look for short term rallies to short into. Here's the hourly chart that I'm looking at:
You can see that I've highlighted this area of previous short term support that if retested, could turn to resistance and be a good place to short. The fact that it also coincides with the daily trend line just adds to the confluence of resistance that price is likely to encounter in the area.
Best of probabilities to you.
Dane.
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