At the beginning of this week I wrote about the reversal formation on the weekly chart which appeared on the resistance on the EURNZD.

This formation is shown on the weekly chart below and has been negated during yesterday’s session.

I also mentioned the potential for further declines, however, only after successful breakthrough of the accelerated trend line rising from the minimum of June 27th. As you can see in the chart below, this line for the fourth time stopped the pressure of sellers.

Yesterday’s news about forming a new government coalition in New Zealand, which contributed to the significant weakening of the kiwi, was a fuel for the rise in the EURNZD. As a result, the pair broke the last maximum and continued a dynamic upward trend.

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Already during today’s session pair reached resistance at 1.6920, where was high from May. If this level is tested as resistance, we can expect a downward correction. Given the upward trend, you can use it to look for long opportunities.

The nearest horizontal support is seen around 1.6670, but you can also expect buy offers near the accelerated uptrend line.

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