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 – Key Support Zone, Lower Lows, ADX Indicator
On the daily chart, the price which is moving lower has broken below the 100%(1.62769) Fibonacci expansion level of the first wave we have and is currently holding below it. Also, the price which is moving lower has created lower lows between the first low that has formed at 1.65318 and the second low that has formed at 1.61215 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 yet another evidence of bearish pressure. So everything looks good here for the bears and we may now move down to lower timeframe and look for evidences supporting this short term bearish view.
EURNZD H4(4 Hours) Chart Analysis – Bearish Convergence, Stochastic Oscillator, Strong Resistance Zone
Looking at the H4 chart, we could see that the price which was moving higher has created a bearish divergence between the first high that has formed at 1.63186 and the second high that has formed at 1.63259 based on the MACD indicator. The price then moved lower and broke below the last low at 1.61778 thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider these as evidences of bearish pressure. Generally, after a bearish convergence we may look for corrections and then further continuation lower. Currently, it looks like a correction is happening. In addition to this, 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. Until the strong resistance zone shown in the image below 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
- Key Support Zone, Lower Lows, ADX Indicator
EURNZD H4(4 Hours) Chart Analysis
- Bearish Convergence, Stochastic Oscillator, Strong Resistance Zone
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
