From Investor to Scalper is a cycle of analysis in which we take one financial instrument and the analysis includes a detailed look at the value from the monthly/weekly chart to the H1/M30.
EURNZD has been moving for a long time in a relatively broad consolidation between levels 1.40 – 1.80. Although the last drops did not reach the lower limit of this box, from the beginning of February last year we are again observing increases.
Looking at the daily interval, we notice that the entire growth movement is within the channel. It is worth noting, however, that due to the ongoing since the beginning of December this year declines the pair has already defeated the upward trend line, which was latter re-tested by rejecting from the bottom. Subsequent declines reached and once again tested the lower channel limit, where a demand reaction re-emerged.
As a result of the increases that have been going on since that time, the price reached the area of technical resistance 1.7020. Considering that this zone is in the vicinity of 50% of the Fibonacci correction from the entire previous bearish movement, we would expect a supply reaction.
Error, group does not exist! Check your syntax! (ID: 4)
If this resistance is rejected, declines may appear in the near future.
If that were the case, we could expect to re-test the area around 1.68, which gives about 170 pips move.
STO is a broker regulated by FCA and CySEC. It offers more than 300 financial instruments such as Forex, Indices, Oil, Stocks, Commodities and Bonds. STO clients have possibility to trade thanks to reliable MT4 and AFX FAST platforms. Check STO offer!