With EURNZD at a key pivotal level, a breakout is imminent. A short-term and long-term outlook on EUR VS New Zealand Dollar (EURNZD) shows that the bulls are all out and set to deal a heavy blow to the bears, in other words, the bears should be warned else, the story might be told by the bulls only on how the bear was given an outright technical knock-out.
It should interest us all to note that eurnzd has met every technical requirement to commence a rally that should eventually break north. Earlier in November 2016, we had EURNZD placed on our radar to be one of our top pairs to trade for 2017 with potential for a massive rally, the journey has commenced and hence this piece should be an update to a party that is in its infancy.
On the weekly outlook of EURNZD, the 1.8686 figure was the peak and also a level which held like an unbreakable rock and has price topped out on sept 2015. Price has however remained under pressure for 69 weekly sessions. However, the bearish pressure was tamed by the falling trend line which was broken in June 2015 to the upside. This is the first time price has come that far to have this broken trend line tested. Still, on the weekly time frame, the whole decline from 1.8686 peaks is corrective in nature, formed a bullish wedge at the right shoulder of a wider inverse head and shoulders pattern. Moreso, an engulfing price action has been spotted on a key 76.4 Fibonacci retracement of the whole rally connected from the low of April 2015 to the high of September 2015.
VERDICT: Where precisely to seek for entries on EURNZD
For those who missed our first entry on EURNZD, an opportunity stick knocks on the door of those who sees the potential and ready to be well positioned for an imminent breakout that will be perhaps well pronounced in 2017 as our trade of the year. For fresh entries, consider 1.5000-1.4900 handle as a gift with our invalidation zone being slightly below the engulfing price action formed on the retest of the broken trend line at 1.4650. Our first target, however, should be the 100-day moving average value of 1.5900 for a whopping 800pips. The second target for eurnzd swing should be 1.6800 for 1,700pips in the second position. Our invalidation zone remains 1.4650