Has the reversal formation completed on the 4-hour chart of the EUR/NZD?
If so, the pair may be in a downtrend later.
Better keep your eyes on these levels if you want to get a big move!
Forex EUR/NZD 4 hours Planned by TV
It looks like the euro bulls have run out of freight!
The EUR/NZD is forming a head and shoulders pattern on the 4-hour chart, as the pair is already preparing to test the neckline.
A break below this support area around the key psychological level of 1.7200 could trigger a decline that is at least as high as the formation.
That would be more than 800 points yo!
The moving averages are looking in favor of a change in trend, as the 100 SMA has just crossed below the 200 SMA to suggest that sellers are taking over.
The pair is also trading below both indices, so they could hold as dynamic resistance levels.
However, stochastic is still heading higher after recently pulling back from the oversold region. In this case, EUR/NZD may continue bouncing off the support until the bearish pressure picks up again.
Don’t forget to file RBNZ policy decision May 2023 Next week, so we may see NZD traders nail their predictions for the higher level event soon!