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 H4 chart here.
EURNZD H4(4 Hours) Chart Analysis – Key Resistance Zone, Bearish Divergence, ADX Indicator
Looking at the H4 chart, we could see that the price which is moving higher has reached a key resistance zone formed by the 261.8%(1.67242) Fibonacci expansion level of the first wave and the 100%(1.67408) 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 on 10th May 2022 and the second high that has formed on 12th May 2022 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 value over 25 which we may consider as another evidence of bearish pressure. Until the key resistance zone holds my short term view remains bearish here and I expect the price to move lower further.
EURNZD H1(1 Hour) Chart Analysis – Bearish Divergence, ADX Indicator
On the H1 chart too, we have a bearish divergence that has formed between the first high that has formed at 1.68005 and the second high that has formed at 1.68412 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 as well 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. So everything looks good here for the bears here and if the price breaks below the low at 1.65663 with momentum we may then consider it as a validation for this short term bearish view and may expect the price to move lower further.
Technical Analysis & Forecast Summary
EURNZD H4(4 Hours) Chart Analysis
- Key Resistance Zone, Bearish Divergence, ADX Indicator
EURNZD H1(1 Hour) Chart Analysis
- Bearish Divergence, ADX Indicator
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.
