Extremely interesting and very legible is graph of EUR/NZD on higher time intervals. The weekly chart shows a stable upward trend, which is lasting almost a year. The last seven weeks have been under the sign of declines, yet the arrangement of higher and higher lows has not been negated. Currently, the correction reaches almost the same range as the decreases from May and June. The support zone that has been violated is also tested. A 2-week-old demand bar and further upward rebound attempts suggest a growing strength on the demand side. It is possible, therefore, that a return to the main tendency is possible.

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Looking for opportunities to play it is worth to go down, for example, to the interval H4. We have a strong growth impulse, which is associated with very poor inflation readings from New Zealand. It seems that together with the previous rebound from mid-January, something like a double bottom is forming on the chart. This is better visible on the daily chart. Today we have a key day for the Euro – interest rates and the ECB conference. So it seems that there will be some settlements. The technique suggests increases after a long period of decline and a key support test. If the ECB does not affect the weakening of the Euro, it is likely that the double bottom formation will activate, ending the period of declines.

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