Daily Price Action
Shares

EURNZD Sellers Keep Pressure on Trend Line Support

Shares

Important: I use New York close charts. Click Here to Use My Preferred Broker

To say that EURNZD bulls have been stubborn lately would be an understatement. The Euro cross has been churning along a trend line that extends from the 2017 lows but has yet to close below it.

Those waiting for a short entry have had to be extra patient in recent weeks. Since February 20, the pair has retested this key support level on ten separate occasions when viewing things from the daily time frame.

Here’s a look at the daily chart showing the last 13 months:

EURNZD long-term trend line on the daily chart

As I mentioned on Sunday, whenever a market begins to lean on a trend line like this, it usually means that a breakdown isn’t far away.

However, it’s still just as important to wait for a daily close (using a New York close chart) below the trend line before considering an entry. And as of yesterday’s session, the pair is still treating this level as support.

The 1.6850 horizontal area is also assisting Buyer’s efforts. While it hasn’t been perfect, the level did serve as support between late October and early November of last year. The area also attracted a bid more recently between late January and mid February of this year.

So will today’s session be the one that breaks through?

We’ll have to wait and see. Weakness early in today’s session has once again taken prices into that 1.6850 zone, and already we’re seeing buyers step in.

Just remember that it’s going to take a daily close (New York 5 pm EST) below the trend line near 1.6880 to establish a short opportunity. Those looking for additional confirmation can wait for the price to clear 1.6850 on a daily closing basis.

Key support comes in at 1.6640 followed by 1.6450. As I pointed out on Sunday, my target following a daily close below 1.6880 will be 1.6140. Keep in mind, however, that such a move will likely take weeks if not months to play out.

Free Webinar: Learn how I trade pin bars, draw key levels, and much more! 

Click Here to Register

EURNZD daily trend line and horizontal levels

Leave a Comment:

9 comments
Sifundo says

Justin you the best thanks for your lessons…God bless!

Reply
asad says

looking forward to this weekly consolidation, going to be a big move hopefully

Reply
Olivia+phiri says

OK

Reply
Dennis Njagi says

Thank you Sir

Reply
Milad says

thank you dear sir

Reply
Thabang Batsalelwang says

Wow… What a beautiful trade set up! I’m getting some light thus far!

Reply
Sam says

Thanks Justin (Mr Spot On)

We might get a catalyst from NZD GDP. Wait for the dust to settle and pick up the pieces from there.

Reply
Marcelo costa says

El PIB va a salir menor a 0,8
Entre 0,5 y 0,6 debería ser suficiente para debilitar el nzd. Saludos

Reply
Gerald Fadzai says

Thanks a lot for the analysis. Rich anslysis for sure. Thanks a lot for the webinar too! Its so so I mean so rich. I would pay just to watch that webinar. Hadn’t know hw to use confluence and my support n resistance wasnt that effective. But thanks a lot.

Reply
Add Your Reply