EURNZD Mounts a Strong Defense at Key Support
11 December 2023
Hello traders, today's focus is on the EURNZD pair, a fascinating instrument for forex enthusiasts. Recently, we've observed a significant development: the pair is robustly defending a key horizontal support level at 1.75. This level has been a pivotal point since early July, reasserting its importance in October and now being tested once again.
The current market dynamics paint an interesting picture. EURNZD has formed what technical analysts call an inverse head and shoulders pattern, identifiable by its unique blue marking on the chart. This pattern is often interpreted as a bullish signal, indicating potential upward movement. What's more compelling is that the price has already breached the neckline of this formation, marked in red, and is maintaining a position above it.
The short-term outlook for this pair is positive, with eyes set on the yellow horizontal resistance at 1.786. The probability of reaching this target seems promising given the current market trend. However, it's crucial to remain vigilant. If the pair were to break below the green horizontal support, it would invalidate the current buy signal and potentially trigger a sell-off. But for now, the chances of such a scenario appear limited.