This pair has been cruising lower on its hourly time frame but is currently stalling at an area of interest.
Can bearish momentum return for EUR/NZD soon?
Check out these nearby inflection points I’m watching.
EUR/NZD 1-hour Forex Chart by TV
EUR/NZD has formed lower highs and lower lows connected by a descending channel that’s been holding since late August.
Price just bounced off the channel resistance and is now down to the mid-channel area of interest, which has held as support so far this month.
If bearish momentum stays in play, the pair could carry on with its slide and make its way down to the next floor near the 1.8000 major psychological mark and channel bottom.
On the other hand, if support at the 1.8100 handle keeps holding, EUR/NZD could set its sights back on the channel resistance near the 1.8200 handle.
Technical indicators are giving mixed signals, though. The 100 SMA is below the 200 SMA to suggest that bearish vibes are present, hinting that a continuation of the selloff is likely.
However, Stochastic is already indicating oversold conditions and looks ready to turn higher, so the pair might follow suit if bullish momentum picks up.
In any case, better stay on your toes during the ECB monetary policy decision and presser, as these top-tier events would likely determine where the euro is headed today!
