Hi Traders! We will discuss about EURNZD buy trade setups in this technical analysis post. The three timeframes that we are going to analyze to find bullish evidences would be the Daily, H4 and H1 timeframes, we mainly do this type of analysis because if we get evidences which support our direction on three or more timeframes then it will make the setup very stronger, this is why I always prefer to do muti-timeframe analysis. First lets start with the daily chart.
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EURNZD D1 (Daily) Chart Analysis – Bearish Channel, Uptrend Line and Important Support Zone
On the daily chart the price is moving inside a bearish channel this channel started from the high which formed on 16th October 2019 and from then the price is respecting this channel and is moving inside it. Price has currently reached the bottom of this bearish channel, we also have an uptrend line which coincides with the bottom of this channel and has created a strong support zone (marked in blue rectangle). The price has reached this support zone and until this zone holds my view remains bearish here.
EURNZD H4 (4 Hours) Chart Analysis – Alternative Trend Line
Looking at the H4 chart we can see that we can see that the price has created an alternative trend line and is respecting it so far. We also have an alternative trend line that has formed on the RSI indicator as well. The price which was moving lower reached this dynamic support and is currently moving higher both in the price chart and the RSI. So until the price holds above this dynamic support we may look for bullish setups with bullish evidences in order to join the bulls.
Note: Remember that when we are drawing trend lines and other chart patterns like triangles, channels etc, we want to see at least two touch points (price touches the trend line). to consider the pattern/trend line valid.
EURNZD H1 (1 Hour) Chart Analysis – Bullish Divergence
On the H1 chart we have a bullish divergence that has formed based on the first low at 1.69931, the second low at 1.69620 and the third low at 1.69608 based on the Moving Averages of the MACD indicator. If the price moves higher and breaks above the last swing high at 1.70421 we may then look for pullbacks and buys with more bullish evidences (candle stick patterns, false breaks, trend line breakout etc…).
How exactly to enter the trade?
There are multiple trading strategies that could be used in this specific setup. If you would like to learn more about the way we handle this setups check out the Traders Academy Club.
EURNZD Technical Analysis & Forecast Summary
EURNZD D1 (Daily) Chart Analysis:
- Bearish Channel, Uptrend Line and Important Support Zone
EURNZD H4 (4 Hours) Chart Analysis:
- Alternative Trend Line
EURNZD H1 (1 Hour) Chart Analysis:
- Bullish Divergence
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