EURNZD Weekly Technical Outlook
On the monthly time frame, the EURNZD is operating between the horizontal resistance zone around 1.75180 and the horizontal support zone around 1.63130. Presently, price action is near the support zone around 1.63130. But we should be interested in the ascending channel (red) traceable to 2016; which is likely to be influential in the market for quite a while. The breakdown of the horizontal support around 1.63130 is likely to give confidence to bears to target the channel support.
On the weekly time frame, last week, bulls pushed price action northwards in their attempt to retest a horizontal channel (blue) that was broken down two weeks ago but they were hindered by bears. Should bulls fail in their attempt to take price action northwards, we may see a southward continuation. A likely target of bears is the horizontal support around the 1.60760 area.
A simple wave analysis on the daily time frame indicates that price action is in a corrective phase. Much likely we are gong to see a southward continuation after price action has made a northward retracement, perhaps to around either the monthly pivot (1.67473) or the 1.69270 area, the 38.2 Fib retracement of the downward drop from October 8, 2018.
Price action on the H4 time frame reinforces the observation on the daily time frame. It is operating within a descending channel (magenta) and presently disposed northwards. We may see further northward move, albeit temporary, before a southward turnaround. The channel resistance is a potential turnaround area.
I am bearish EURNZD.
I may be wrong. Trade safe and prosper.