The EUR/NZD currency pair is moving in a broad consolidation this year. The range is the minimum of February this year. 1.6230 and the maximum of August 1.7160.
- Strong downtrend since mid-August
- false breakout announces further declines
After the August maximum was established, the price began to fall and a strong downward trend emerged. Last Friday the price reached the level of 1.6525. The daily candle from Friday formed an inside bar formation.
Yesterday there was an attempt to break out of the formation, but at the end of the day the price returned to the inside bar, the upper wick of the candle signals a false breakout and the possibility of the continuation of the declines. If the downward breakout occurs and the MACD remains in a downward phase, declines of another 150 p are quite likely.
Overcoming the minimum of the inside bar formation may accelerate declines and the target may be the demand zone formed over 4 years ago starting at the level of 1.6370.
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