The quotations of the EURNZD since the high close to 1.7475, from November last year, are moving in a consolidation between this level and support within 1.6600.
As can be seen in the daily chart below, after the recent recovery from the support, a strong upward trend was created, where at the beginning of the current month there was a strong divergence between the price and the moving average EMA 10/20.
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However, in the next days, the quotes returned to the dynamic support provided by the channel created from these averages. In addition, during the yesterday’s session there was a significant rebound from the 20-day EMA.
In turn, after switching to a 4-hour chart, we can see that the correction took the form of a bullish flag, which is often a break before the next upward impulse. Therefore, if there is a breakout from the channel, the buyers may continue to push the pair to 1.7475.
Overcoming last year’s peaks will open the way for further increases towards the key resistance located near 1.7900.
