The Euro-New Zealand Dollar pair has been moving in an uptrend since mid-December last year. Higher peaks and higher lows are being established in the trend, forming an ascending wedge.
EURNZD – price has reached the resistance of the ascending wedge
Currently, the price has reached the resistance of the wedge and for the second day in a row cannot overcome it. The daily candles close below the resistance leaving long upper wicks. We faced a similar situation at the end of December 2022.
EURNZD H4 – breakout from consolidation
On the H4 chart, we note that the last two days the price has been moving in consolidation and today it broke out of this formation at the bottom. A downward divergence has appeared. Breaking today’s minimum could initiate declines towards the support of the wedge.
In the event of a successful upward breakout from the wedge, which should be confirmed by the closing of the daily candle above the wedge resistance, the price could dynamically follow to the nearest supply zone of 1.7350.
LIVE EDUCATION SESSIONS
The above analysis is based on the PA+MACD strategy, a detailed description of which you can read HERE . I will talk more about the PA+MACD strategy applied to these currency pairs during the live trading sessions which you can attend from Monday to Friday.
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