EURNZD Bearish Idea Intact Below 1.7120

by Justin Bennett  · 

May 31, 2019

by Justin Bennett  · 

May 31, 2019

by Justin Bennett  · 

May 31, 2019


Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.

On Tuesday we looked at a EURNZD terminal pattern.

The pair was in the process of testing channel support at 1.7060.

However, key resistance wasn’t far away at 1.7120. That was the level that buyers failed to hold as new support on the 24th.

As is often the case, that false break has attracted offers in the 1.7120 region.

You can see how EURNZD buyers have stumbled this week each time they’ve reached that 1.7120 area.

Today’s session managed a 1.7150 print, but as always, I don’t pay attention to the intraday price action.

What matters most is where the pair closes at 5 pm EST.

At the time I’m writing this, it appears EURNZD will close well below 1.7120 and perhaps even carve a bearish pin bar into today’s close.

As for what could trigger a breakdown next week, there is a well-defined channel we can use for that.

If we use the two highs from April 17th and May 8th as a guide to plot an ascending channel, you can see how well support has held so far this week.

But that support level may not be able to hold much longer.

The price action here is heavy and is starting to weigh on that 1.7080 region.

If it fails, we could see EURNZD start to trend lower next week.

As for key support levels below 1.7080, I would keep a close eye on 1.6730 as well as the minor area at 1.6930.

This idea will remain in play as long as 1.7120 resistance holds on a daily closing basis.

I also have a short position here and plan on adding following a close below channel support. We’ve been discussing this idea at length in the member’s area.

Want to see how we’re trading EURNZD? 

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EURNZD ascending channel on the daily chart


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23  Comments

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  2. Hello justin: this is really great analyse, I am following you for about a year and I love your way that you analyse and go in forex
    I am shuja from Afghanistan. And learning forex I really wish one day I can become your student from Afghanistan and change my life and my family life here using your mentorship lessons.

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  3. sir thnx fore brish worlduse plz i m not andstnad english so plz must top world use brish and bullish thanx ur idias is great

  4. Its a blessing coming upon this site,so far your analysis to price action and charts is second to none will keep following you…

  5. Thank you Justin,I am working on raising the money to become a member of your team because I know with you am going places in this career

  6. Hi Justin,I’m Patrick from Ghana …thats great.. I have been a fan of great analysis from you always… Hopefully, I will find enough money to purchase your life time membership

  7. THANKS!… AND 1.7120 level/zone is very close to EURNZD 50fib level..for bearish trend that started early September 2018…around the 10th…appears more visual on weekly chart…:::the probability edge and patience!!

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