EURNZD – the current situation on this pair confirmed the downward scenario described in the analysis from January 8 –https://comparic.com/eurnzd-leaves-channel-attacks-neckline-hs-08012017.
This is how situation looked like on EURNZD on January 8, when the pair broke the neck line of the formation Head & Shoulders. I expected return of the price to the bottom edge of the triangle, which has occurred and it seems that nothing stands in the way to further decreases.
The retest of the lower limit of the triangle was done and the pair is going south. Currently (22/01 at 15:00) pair is at the level of the hypothetical neck line of the Head and Shoulders formation.
If the price breaks this level effectively, the goal of supply may be the strong support level of 1.6350. On the way we have a demand zone around 1.6600-1.6550 where is placed a local minimum from 10 January. I will add that on this pair, in the case of SELL (short) orders, we have a positive SWAP, which is noteworthy when planning a long order.
When planning orders on this pair, remember and consider the ECB meeting on Thursday, after which we will know the interest rates (13:45 GMT+1 ). At 14:30, the “Super Mario” speech is planned, whose statements on further financial policy and the QE program may cause significant movements on the EUR pair.