Hi Traders! EURNZD short term forecast and technical analysis 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. As we do in every technical analysis post we are going to perform the multi-timeframe technical analysis on this pair in order to find possible trading opportunities. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available! Let’s start our analysis now from the highest timeframe which will be the daily chart here.
EURNZD D1(Daily) Chart Analysis – Strong Resistance Zone, Bearish Hidden Divergence, Stochastic Oscillator
On the daily chart, we had a strong support zone and the price which was moving lower has broken below this and held below it. After the breakout this strong support zone is acting as a strong resistance zone for us. Currently the price which is moving higher has reached this strong resistance zone and is holding in this zone, until this zone holds I expect short term bearish moves to happen here. In addition to this, the price has created a bearish hidden divergence between the first high that has formed at 1.73580 and the second high that has formed at 1.63562, based on the MACD indicator, which we may consider as evidence of bearish pressure. Also, based on the Stochastic Oscillator we could see that the price has reached its extreme which we may consider as yet another evidence of bearish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this short term bearish view.
EURNZD H4(4 Hours) Chart Analysis – Key Resistance Zone, Bearish Divergence
Looking at the H4 chart, we could see that the price which is moving higher has reached a key resistance zone formed by the 161.8%(1.63312) Fibonacci expansion level of the first wave and the 61.8%(1.64883) Fibonacci expansion level of the second wave. In addition to this, we have a bearish divergence that has formed between the first high that has formed at 1.63562 and the second high that has formed at 1.64027 based on the MACD indicator which we may consider as evidence of bearish pressure. So everything looks good here for the bears and until the key resistance zone holds my short term view remains bearish here and I expect the price to move lower further.
Technical Analysis & Forecast Summary
EURNZD D1(Daily) Chart Analysis
- Strong Resistance Zone, Bearish Hidden Divergence, Stochastic Oscillator
EURNZD H4(4 Hours) Chart Analysis
- Key Resistance Zone, Bearish Divergence
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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Happy Trading!
Arvinth Akash
Traders Academy Club Team.
