EURNZD reached last week the key resistance area around 1.7095. As can be seen in the daily chart below, before yesterday’s session many previous candles were characterized by small body in relation to the shadows, which indicated indecision of market participants.

However, the candle from yesterday has a large bearish body and a long wick at the top that testifies advantage of the supply side and respects the key resistance. It is possible that bears will now want to push the course down to lower levels, where the closest goal is the trend line running from this year’s lows.

Breaking this trend line would open the way to support at 1.6750. The key here is the level of the low from the current year at 1.6518.

Alternatively, more significant increases to 1.7400 / 77 may occur after successful closing over the resistance area shown in the chart below, whose upper limit is the maximum from last week at 1.7160.

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