To receive Michael’s analysis directly via email, please SIGN UP HERE
- EURNZD threatens double top breakdown with a break below 1.7124
- Check out our 4Q projections in our Free DailyFX Trading Forecasts
- Join Michael for Live Weekly Strategy Webinars on Mondays at 12:30GMT
EUR/NZD Daily Chart
Technical Outlook: EURNZD has been trading within the confines of a broad ascending pitchfork formation extending off the 2016 / 2017 swing lows with price reversing off parallel resistance this month. As it stands now, the pair is poised to post and outside week reversal candle off resistance (bearish) with a break of the recent lows risking a double top breakdown targeting 1.6881-1.6930. Note that ongoing momentum divergence further highlights this threat and although the broader focus remains higher, the near-term risk is for a correction lower.
New to Forex? Get started with this Free Beginners Guide
EUR/NZD 240min Chart
Notes: A closer look at price action highlights near-term confluence support here at 1.7124 with a break / close below this threshold needed to validate a double top breakdown. Such a scenario targets initial support objectives at the monthly open at 1.7009 backed by the 61.8% retracement at 1.6923 and the measured move into 1.6881. Note that the median line also converges on this threshold heading into the close of the month (area of interest for possible exhaustion / long entries).
Bottom line: I’ll favor fading strength while below the weekly open at 1.7332 with a breach above 1.7409 needed to validate resumption of the broader up-trend. Ultimately, a move lower towards structural support would offer more favorable long-entries. Keep in mind we have the release of key Eurozone inflation and employment data on tap this Thursday.
Join Michael on Friday for his bi-weekly Live Webinar on the Foundations of Technical Analysis- Register for Free Here!
Relevant Data Releases
Why does the average trader lose? Avoid these Mistakes in your trading
Other Setups in Play
- AUD/USD Short-Term Indecision into Long-Term Direction
- Weekly Technical Outlook: Key Setups in Play Heading into Monthly Close
- Ethereum Price Rally Stalls Ahead of Key Resistance Targets
- NZD/JPY Range Break Targets Fresh Monthly Lows
- Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex or contact him at firstname.lastname@example.org