EURNZD finally reached trend line resistance which I mentioned last week. The pair also put in a bearish pin bar today while closing below the 1.581 key level.
The pair has been in a downtrend since late last year and if today’s bearish price action is any indication we may see further losses from here. The next key support level appears to come in around 1.542.
The one thing I don’t like about this setup is the recent sideways price action. It’s generally more advantageous to see the market rise at a faster pace before “tagging” a resistance level. The longer the market hangs around this level the greater the chance that it will break through resistance.
Summary: There is the potential to take a 50% entry of today’s pin bar but do keep in mind the sideways price action so you can manage your risk accordingly.
GBPCHF is a pair that was mentioned in yesterday’s analysis as a market that was retesting former trend line support. Today saw the market sell off quite heavily although the price action I’m seeing at the moment on the 4 hour chart does signal that the market may try to break higher from here.
Summary: Nothing to do at the moment but wait and see how the market reacts to the levels noted in the chart.