Hi Traders! EURNZD 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 – Strong Resistance Zone, Bearish Divergence, Uptrend Line Breakout, ADX Indicator
On the daily chart, we have a strong resistance zone that has formed where the psychological level 1.70 coincides and the price which is moving higher has reached this zone, respected it and is bouncing lower from this zone. Also, we have a bearish divergence that has formed between the first high that has formed at 1.68412 and the second high that has formed at 1.69667 based on the MACD indicator which we may consider as evidence of bearish pressure. Also, the price which is moving lower has broken below the most recent uptrend line which we may consider as another 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 one timeframe lower and look for evidences supporting this bearish view.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
EURNZD H4(4 Hours) Chart Analysis – Bearish Convergence, ADX Indicator
On 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 1.69304 and the second high that has formed at 1.69667 based on the MACD indicator. The price then moved lower and broke below the last low at 1.66642 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, 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 yet another evidence of bearish pressure. Until the strong resistance zone (marked in red) holds my view remains bearish here and I expect the price to move lower further after pullbacks.
Technical Analysis & Forecast Summary
EURNZD D1(Daily) Chart Analysis
- Strong Resistance Zone, Bearish Divergence, Uptrend Line Breakout, ADX Indicator
EURNZD H4(4 Hours) Chart Analysis
- Bearish Convergence, 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 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.
You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.
Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?
I invite you to
And improve your trading with us.
Also, you can get one of our strategies free of charge. You will find all the details here
If you have any further questions, don’t hesitate to drop a comment below!
Happy Trading!
Arvinth Akash
Traders Academy Club Team.
