EURNZD Bullish run to commence (10/04/2019) 12:22
EURNZD has been dropping since September 2018, though it seems that the market has bottomed out. The reason we think this is the case is because although the price was falling, recently it has failed to create a lower low. This thus indicates that the Bearish momentum is dying out. The market is creating a double bottom like structure on the D1 chart. When observing the price from an H4 perspective, it looks as though it is forming an inverse head and shoulders. This too signals a possible upward move. Based on the H4 inverse head and shoulders pattern we are expecting a retracement towards `the neck line. In terms of why the price is failing to create lower lows on the D1 chart, we believe that it is because of the confluence of the fib zone and the support level. Which is likely to attract buying interest. Additionally, the converging trend lines indicate lack of momentum. Hence the break out to the top which indicates that the buyers have taken over.