EUR / NZD was bearish on the daily chart. The pair produced a bearish engulfing candle yesterday. The day before yesterday, the candle came out like a corrective bullish candle. As a result, daily sellers could find themselves short of the pair below yesterday’s low. The H4 and H1 chart is also good for sellers. Let’s take a look at these three graphs.
EUR / NZD daily chart
The graph shows that the price is heading south. The day before yesterday, the candle came out in the form of a bullish pin bar. However, yesterday’s candle engulfed the pin bar, which gives a strong bearish tone in the daily chart. Daily sellers could find themselves short of the pair below 1.80125. The price could find its next support around 1.76760.
EUR / NZD H4 Chart
The chart shows that the price made an upward correction after making a bearish move. During the last bearish wave, the price rebounded to 1.80630 and had an upward correction. The 1.82920 level worked as a resistance level, driving the price down. The price has wandered around the last swing lows, may generate bearish momentum below yesterday’s lows low, and it could find its next support around 1.75885. If the level of support produces a bullish momentum and breaks the resistance, on the other hand, the price can rather become agitated instead of being very bullish.
EUR / NZD H1 Chart
The H1 chart looks excellent for sellers. The price fell sharply and rebounded to 1.80280. It headed north and found resistance at 1.80980, where the price reacted earlier. An inverted level of support / resistance attracts more traders if it produces a bullish / bearish reversal candle. It has already produced a bearish engulfing candle. If the price heads south and breaks at 1.80280, the sellers could find themselves short of the pair and push the price down with good selling pressure. The price could find support at 1.77500. Since the H4 and the daily chart are bearish biased, sellers can therefore take a partial profit and hold the rest of the positions to grab more pips.
These three cards look good for the bear. The H4 chart looks pretty good, but the daily chart and the H1 chart look extremely good. Thus, the pair could end up producing another bearish candle on the daily chart.
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