EURNZD Upside Thrust Underway Before Reversal

The Euro looks like gaining some pace against a few major currencies, including the US dollar and the New Zealand Dollar. However, the upside might be limited considering the fact that the shared currency is still under immense pressure. The EURNZD pair is the one to watch out for, which I think might present a nice sell opportunity. There is a major bearish trend line on the daily timeframe, plus a bearish hidden divergence formed pointing towards more losses in the near term.
The Manufacturing Purchasing Managers Index (PMI) was released by the Markit Economics, which came above the forecast and currently helping the Euro.

Technical Analysis:

D1 – Critical resistance forming around 200-day MA and a bearish trend line, Bearish hidden divergence.

Entry:

H1 – Sell when the EURNZD pair moves higher to duplicate the last wave, and forms a bearish divergence around
the highlighted trend line, i.e. around 1.5280-1.5300.
Target 1: 1.5120
Target 2: 1.5020
Stop Loss: A 4H close above the last high of 1.5400.

Video Explanation:

Yours,
Vladimir

 

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