Daily Price Action
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EURNZD Ascending Channel Hints at Further Weakness

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Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.

Click here to get access to the same charts I use on this website.

In the past couple weeks, we’ve seen several commodity currency crosses such as the EURAUD and GBPNZD trend lower. In fact, I just provided an update on the GBPNZD yesterday, and already the cross is down another 70 pips.

One that I haven’t mentioned is the EURNZD, at least not publicly. I did, however, point out a potential short in the member’s area when the pair was trading above 1.70. The pair hit our target today for a profit of just under 300 pips.

However, for those who missed the earlier opportunity to short this, the EURNZD is in the process of testing channel support at 1.6740. At the moment, we have a 4-hour close below the level, but I’m waiting to see what the daily time frame does.

That involves waiting for the New York close at 5 pm EST. If the pair closes the day below that 1.6740 area, we could see this two-week selloff continue.

Key support below it comes in at 1.6640 followed by 1.6450 and 1.6240. I’ll be the first to admit that the horizontal levels here aren’t nearly as precise as the EURAUD. In fact, the pair has stair-stepped nicely on those levels I pointed out on May 16.

That said, I do think the levels above will be significant if tested as support. But until we get the all-important daily close at 5 pm EST below 1.6740, there isn’t much to do here in my opinion.

As a side note, the EURNZD is approximately 40 pips away from carving a bearish outside month. That alone could be worth tracking if it materializes within the next few days.

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EURNZD ascending channel

Leave a Comment:

23 comments
ab says

for short to late

Reply
    Justin Bennett says

    Correct, as long as you’re referring to the opportunity a couple weeks ago. But at the moment, you’d be too early, not too late.

    Reply
    Juniour says

    I second you there ab already i have a trade running with 402 pips there

    Reply
Sami says

Governer State Bank of Newzealand’s speech is due this wednesday. Should I take this trade after that, when the trend is clear?

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Mel says

Good Day Justin,
Why is the 5 PM close always important to every pair? Thank you. 😀😀

Reply
    Justin Bennett says

    It’s the official/unofficial daily close. The retail market opens the week at 5 pm EST and closes the week at 5 pm EST, so why would you want each 24-hour session to be any different? 🙂

    Your broker also uses 5 pm EST to calculate rollover. That isn’t a coincidence.

    Open a New York close chart and watch how the market responds to a key level just before the 5 pm EST close. Once you see it, you’ll never go back to anything else.

    Reply
      carmen says

      is there any website where i can check New York close charts?

      Reply
28 says

Hi Mr. Bennett thank you VM again,… but on a lighter note, i think you give Incredible forecasting i’m even i’m tempted to transform you into an “indicator”, and have you on my charts whenever i need you…(*_*).

Reply
    Ngozi Amuta says

    A new indicator named “Justin Bennett”? How nice!!!!

    Reply
jenerali says

what do you mean by ‘commodity currency crosses’?

Reply
    Justin Bennett says

    Commodity currency = AUD, NZD, etc.

    Cross = Non-USD pair

    Reply
    Said I Kipingu says

    Mambo vipi JeneraliYour name sounds like of Swahili nature.Otherwise I wish u all the best in your forex carrier.

    Reply
phemmy says

I appreciate all tumb up for you but I wish you can communicate better to a starter. Just make complex word simple. Your predictions on GBPJPY burnt my fingers. Am new and learning the rope but already your student

Reply
    Justin Bennett says

    I’ve always tried to keep my material simple. If you have a question, I can answer it, but without one, there isn’t much I can do to help.

    Reply
Sani says

You are always on point. Thanks a million times. Justin, please am a member of the DPA life membership, you always mention you give a first hand hints on most of your analysis in the members area, I don’t how to benefit I.e how to use members area platform to my advantage, please let me know how to use these priceless privilege.

Reply
    Justin Bennett says

    You’re welcome. You should probably send me a private message via the member’s area rather than a comment here. Cheers.

    Reply
frankie says

hello there..

you’ve just mentioned
“That involves waiting for the New York close at 5 pm EST. If the pair closes the day below that 1.6740 area, we could see this two-week selloff continue.”

how about when price closed right above this level on the daily? what are the chances of it continuing the bearish movement?

thank you..

Reply
    Justin Bennett says

    Hi Frankie, if you have to ask, it’s a sign that you might want to wait.

    Reply
LE THI BICH NHAN says

quá hay…tuyệt quá bạn ơi

Reply
Eugene Igwe says

Thank you sir, I really appreciate all the notes you have sent to me, you are my mentor, you put it all in clear perspective. Thank you. Eugene.

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Raj says

Mr Bennett is the best of the best !!!!

Reply
Ruben Alves says

Do you send your daily analyses via wassap???

Reply
Amaka says

I sent you a message to join your WhatsApp group, kindly reply.

Reply
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