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EURNZD H4(4 Hours) Chart Analysis – Potential Double Wave Correction, Key Support Zone, Bullish Divergence, RSI Indicator

Looking at the H4 chart, currently it looks like a correction is happening in the form of potential double wave down. Also, we have a key support zone that has formed based on the 61.8%(1.81826) – 100%(1.80623) Fibonacci expansion level of the first wave. The price which was moving lower, reached this key support zone, respected it and is currently bouncing higher from this zone. Also, we have a bullish divergence that has formed between the first low that has formed on 23rd August 2023 and the second low that has formed on 1st September 2023 based on the MACD indicator which we may consider as evidence of bullish pressure. We also have this bullish divergence on the RSI indicator as well, which we may consider as yet another evidence of bullish pressure. In addition to this, currently there are no signs opposing this short term bullish view. So based on all this, until the key support zone holds my short term view remains bullish here. A valid breakout above the most recent downtrend line would be the validation for this short term bullish 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 buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.

Also, don’t forget to protect your buy trade using a  and make sure to set a target and keep a proper  ratio.

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