In the H4 chart, it can be seen that the euro exchange rate against the New Zealand dollar has been somewhat trapped. The last two weeks have not changed much here. We are now seeing a slightly stronger downward reaction, which may lead us towards this year’s lows and key support in one.
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Return of bears?
The EURNZD has been in the range between 1.6550 and 1.6800 for some time. Especially this lower limit is important, as can be seen in the daily chart. This is around this year’s lows, where the supply has been stopped three times. Only after breaking this level will you be able to talk about further declines.
If the bears manage to overcome the key support at 1.6550, then they can easily go to the area of 1.6140. Over the last two years, the price has reacted here several times. If bulls return to the game, they first have to overcome the local resistance at 1,6800, and then they will have an open road up to 1,7100.