EURNZD Short Term Forecast Update And Follow Up

Hi Traders! EURNZD short term forecast update and follow up is here. On October 6th I shared this “EURNZD Technical Analysis And Short Term Forecast” post in our blog. In this post, let’s do a recap of this setup and see how it has developed now. 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!

My Idea

Looking at the H1 chart, currently it looks like a potential double wave correction is happening, Also, we have a key support zone that has formed based on the 100%(1.75024) 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 at 1.71326 and the second low that has formed at 1.70716 based on the histogram of the MACD indicator which we may consider as evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here as well at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. 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 bullish view.

 

 

 

EURNZD H1(1 Hour) Chart Current Scenario

Based on the above-mentioned analysis my short term view was bullish here and I was expecting the price to move higher further until the key support zone holds. Also, I mentioned that “If we get a valid breakout above the most recent downtrend line we may then consider it as a validation for this bullish view”. The price action followed my analysis exactly as I expected it to here, the validation for the bullish view which is a valid breakout above the downtrend line happened, we then had a pullback and then the price moved higher further and delivered 350+ pips move!

(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)

 

 

On the M15 chart, the market provided us with various facts supporting the bullish view. After the breakout above the H1 downtrend line, we had a pullback on the M15 chart with the price creating a bullish divergence between the first low that has formed at 1.72954 and the second low that has formed at 1.71945 based on the MACD indicator. The price then moved higher and broke above the most recent downtrend line. We may consider these as facts provided by the market supporting the bullish view. Also there were no signs opposing this bullish view. Then as you can see in the image below how the price moved higher further and provided an excellent move to the upside!

 

 

So traders, when it comes to trading, there are various important factors that we need to pay attention to, just because we have a good setup doesn’t mean that we can enter the trade randomly and it will pay us huge profits. First of all, we need to validate the entry and we should have a perfect entry plan to get into the trade which is a key factor when it comes to trading. This EURNZD short term forecast is yet another good example of this scenario.

 

Happy Trading!

Arvinth Akash
Traders Academy Club Team

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