Hi Traders! EURNZD technical analysis and short term forecast 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. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available!
EURNZD H4(4 Hours) Chart Analysis – Heikin Ashi Candles, Bearish Convergence, RSI Indicator
On the H4 chart, based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies in downward moving market conditions so it basically reflects a bearish environment. Also, we could see that the price which was moving higher has created a bearish divergence between the first high that has formed at 1.79959 and the second high that has formed at 1.80686 based on the MACD indicator. The price then moved lower and broke below the last low at 1.77958 creating lower lows, 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, we have this bearish convergence on the RSI indicator as well which we may consider as another sign favoring the bears. So everything looks good here for the bears. Until the strong resistance zone shown in the image below (marked in red) holds, my short term view remains bearish here and I expect the price to move lower further after pullbacks.
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
Home Trader Club Team.
Thanks Vladimir for the analysis. What about gbpaud?
You are welcome 🙂
GBPAUD delivered short term ABCD correction
Very tricky read of price movement at the moment, with 50-50 on direction