EUR/NZD traded higher today, after hitting support near the 1.6245 level. Overall, the rate continues to trade above the upside support line drawn from the low of April 5th, and thus, we continue to see a positive near-term picture. However, we will get more confident on a trend continuation if we see a clear break above 1.6405, marked by the high of May 2nd.
This will confirm a forthcoming higher high on the 4-hour chart and may initially target the 1.6540 zone, marked by the inside swing low of January 5th. If the bulls don’t stop there, we could see them climbing towards the 1.6660 zone, marked by the inside swing low of February 24th, the break of which could extend the advance towards the high of that same day, at 1.6780.
Shifting attention to our short-term oscillators, we see that the RSI rebounded after hitting support near its 50 line, while the MACD lies positive, slightly below its trigger line. It could cross above that line soon. Both indicators detect positive price momentum, supporting the notion for further advances in this exchange rate, but the fact that the MACD is still below its trigger line adds credence to our view of waiting for a break above 1.6405.
On the downside, we would like to see a clear dip below 1.6075 before we start examining a bearish reversal case. The rate will already be well below the upside line taken from the low of April 5th, and the bears may get encouraged to push the action down to the 1.5925 barrier, marked by the low of April 20th. If they don’t stop there, we may see them targeting the 1.5845 zone, marked by the low of April 14th, the break of which could extend the fall towards the low of April 13th, at 1.5700.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.82% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2022 JFD Group Ltd.