On Saturday, I discussed an upcoming opportunity on the EURNZD.
Last week carved a bearish pin bar following the retest of a trend line that extends from the March 2019 low.
Here is a view from the weekly time frame:
It’s a textbook example of former support becoming new resistance.
One thing I pointed out on Saturday was the 50% retracement of last week’s range.
That level is 1.6830, give or take a few pips.
So far, Tuesday’s high is 1.6828, and sellers are doing their part to keep it that way.
Here is the EURNZD segment of the latest forecast video:
Another level I discussed on Saturday is the bottom of a short-term ascending channel that began at the end of December.
As long as EURNZD is above this channel support near 1.6775 on a daily closing basis, the area will continue to attract buyers.
The “daily closing basis” refers to the 5 pm EST close when using New York close charts. Get access to the same Forex charts I use today.
That said, last week’s price action looks relatively bearish.
A daily close below ascending channel support would open the door to the recent swing lows near 1.6620 and perhaps 1.6570.
Alternatively, a break above last week’s high at 1.6919 would negate the bearish outlook.