EUR/NZD - Key Bulls support levels

FX forecast / EUR/NZD - D1 / H4 / Our expectations

EUR/NZD - D1 (Main Chart)

The pair is in the long-term uptrend and after correction. The price forms a triangular formation at the top, and then we see a breakthrough in the ascending direction and a subsequent short-diagonal test at the moment. Support for the Ling is also 23.6% Fibonacci correction. The interesting thing right now is that the price forms and turns Head And Shoulders, which is characterized as a trend-confirming formation. The figure is still inactive, but the right shoulder formation gives us good levels for positioning, which will look in detail on a 4-hour chart. 50 and 200SMA are beaded, with the price being tested over the 50-period top. DeMarker goes out of the overpurchase area.

Let's take a look at the 4-Hour Price Action and the possible entry levels.

On a lower, 4-hour schedule, the level of support is confirmed again. During the test of the upper diagonal of the triangle there are a number of upward deflections that form bullish pin bars. In addition, 50 and 200 are beaded, the 200-period coincides with the upper diagonal of the triangle. Here at Fibonacci the levels are controversial, as we have a breakthrough and keep the price below 38.2% on the last wave, but also a 50% match on H4 and 23.6% on a daily basis - a strong level of support that might be tested. For this reason, it is good to move SL below this level.

SL: 1.692192

Alternative Scenario: If the price goes below the support zone (in blue) and stays there in several successive bars, the positive scenario will be spoiled and more likely to see a decrease in the pair's price.

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