Hi Traders! EURNZD technical analysis and short term forecast post is here. We do our analysis on the MetaTrader4 platform (MT4), some very interesting, useful tips and hacks about the MT4 platform could be found here. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available!
EURNZD H4(4 Hours) Chart Analysis – Key Resistance Zone, Bearish Divergence, ADX Indicator
On the H4 chart, the price reached a key resistance zone that has formed based on the 61.8%(1.70929) Fibonacci expansion level of the big wave and the 61.8%(1.71047) Fibonacci expansion level of the small wave. The price respected this zone and is currently moving lower. Also, we have a bearish divergence that has formed between the first high formed at 1.71070 and the second high formed at 1.71756 based on the MACD indicator which we may consider as evidence of bearish pressure. In addition to this, the ADX indicator gave a bearish signal here at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads a value over 25 which we may consider as yet another evidence of bearish pressure. So everything looks good here for the bears and until the key resistance zone (marked in red) shown in the image below holds my short-term view remains bearish here. A valid breakout below the most recent uptrend line would be the validation for this bearish view.
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short-term sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
Also, don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Arvinth Akash
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