In the current turbulent situation related to the tension on the Russian-Ukrainian border, it is difficult to analyse the market in the long term. Any analysis, however well-grounded, be it technical or fundamental, may become outdated at any time when new bad or good news concerning the conflict in the East of Europe appear.
- conflict in the east influences the markets
- EURNZD short-term analysis
- Tuesday 22.02.22 working strategy lecture
It seems that short-term analyses – on instruments that are less susceptible to news – may be the most accurate.
Such is the following analysis of the EURNZD pair. I wrote about this pair (February 17 entry) and it seems that the scenario is still valid.
On the daily chart of the pair of currencies of quite distant economic zones, interesting technical formations appeared.
From August 2021, an inverted head and shoulders pattern began to form. The formation was completed in mid-January this year and the price overcame the neckline. The movement after the breakout turned out to be quite strong, the price overcame 555p and reached 1.7355.
After the establishment of more than a year’s maximum, declines occurred. An inside bar formation appeared. When the price broke out of the formation, MACD oscillator entered into a downward phase, thus confirming further declines according to the PA+MACD strategy.
As long as the MACD is in the downward phase, further declines are still possible, the neckline beaten a month ago may be a target for supply.
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.
More current analysis on the group : Trade with Dargo
I invite you to my – Tuesday, 22th of February at 08:00-09:00 GMT– live trading session here: https://www.xm.com/live-player/basic
In our Facebook group, which you can join anytime: https://www.facebook.com/groups/328412937935363/ you will find 5 simple strategies on which my trading is based. There, every day we post fresh analyses of currency pairs and commodities. You can also visit my channel where I post my trading ideas: https://t.me/TradewithDargo