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EURNZD: Staying Short Below 1.7120

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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.

EURNZD sellers cleared a key support level on Monday.

I wrote about this ascending channel on Friday. I was relatively bearish given the false break above 1.7120 earlier in May.

Furthermore, the pair was in the process of carving a bearish inside bar pin bar combination.

I mentioned this setup on Sunday as well.

Monday’s breakdown helps solidify the idea that EURNZD is likely headed lower.

Sellers cleared channel support on a daily closing basis and also confirmed the inside bar pin bar setup that materialized last week.

However, they failed to break the 1.7030 support area that has held for the last two weeks.

It seems the euro nearly matched every uptick from the New Zealand dollar on Monday.

But I still like EURNZD lower.

Friday’s pin bar from 1.7120 illustrates the amount of supply available at higher prices, and Monday’s break of channel support paints a bearish picture.

Still, it’s essential to respect the risk.

Just because EURNZD has broken a few support levels does not mean it can’t push back above 1.7120.

For now, though, the pair will likely encounter sellers at 1.7100/20.

At the other end, a break below 1.7030 would expose the minor support at 1.6930 followed by the key support and target at 1.6730.

I will remain bearish EURNZD as long as that 1.7120 handle remains intact as new resistance on a daily closing basis.

I’m also still short here per my comments in the member’s area last week.

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EURNZD ascending channel on the daily time frame

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12 comments
Justin Bennett says

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Lindiwe says

Nice analyisis Justin,i’m also on it

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NiZa Onoja says

This pair is most likely heading down. Thank you Justin for your dedication. May we all enjoy an enterprising week.

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    Justin Bennett says

    You’re welcome.

    Reply
Ali says

Thank you justin for mentoring me.

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    popoola samuel says

    Good analysis, really enjoying every bit of it in no distance time I will be a member.thanks alot

    Reply
      Justin Bennett says

      Thanks. Looking forward to seeing you on the inside.

      Reply
    Justin Bennett says

    You’re welcome.

    Reply
Samuel says

Thanks sir for the update.

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    Justin Bennett says

    You’re welcome, Samuel.

    Reply
Jackie says

Is this an uptrend now? Pliz let me know before I lose all my money as I have short trades

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