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EURNZD H1(1 Hour) Chart Analysis – Bearish Convergence, ADX Indicator, Uptrend Line Breakout
On the H1 chart, we have a bearish divergence that has formed between the first high which has formed at 1.73772 and the second high which has formed at 1.74007 based on the MACD indicator. The price then moved lower and broke below the last low at 1.72554 thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider this as evidence of bearish pressure. As per the book scenario after a bearish convergence, we may expect corrections and then a further continuation lower. Currently, it looks like a correction is happening. 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 value over 25 which we may consider as another evidence of bearish pressure. Also, the price has also broken below the most recent uptrend line which we may consider as yet another evidence of bearish pressure. So everything looks good here for the bears and until the strong resistance zone (marked in red) shown in the image below holds my short-term view remains bearish here and I expect the price to move lower further.
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