EUR/NZD Is Testing 1.5350

Yesterday’s EUR/NZD drop to 1.5350 and the (MA)89 indicator on the four-hour time-frame was a textbook example of the the double top pattern and the countermove that usually follows, especially when the double top is this obvious. The question now is what fill follow next.

The pair is still consolidating above the support at 1.5350, which coincides with (MA)89 on the four-hour time-frame and despite the two hammer candlesticks it have formed above that level it has not yet started moving to the upside yet. There are two possible scenarios here – in the first scenario the pair will bounce off the support and it will continue moving towards the first resistance at 1.5400, which used to be a support and then it will likely test the double top once again, or it will break below 1.5350 and continue falling towards the support level at 1.5320 – 1.5300.