EUR/NZD Is Testing the Support at 1.6890

Last week EUR/NZD bounced off from the resistance at 1.7100 after forming a pair of clear shooting star candlesticks on the four-hour time-frame at that level and then proceeded to move to the downside. Today the pair finally found some support at 1.6890 which coincides with the (MA)89 indicator on the same time-frame. Currently the pair is testing that support level and if it bounces off from it as well it may retrace back to 1.7000 or even to the last high at 1.7100. On the other hand, if the pair does break out below the support at 1.6890 there will likely be a further move to the downside towards the next support, which is at 1.6780, which is the same indicator, but on the daily time-frame.

EUR/NZD Is Bearish for Now

A week ago EUR/NZD formed a very clear hammer candlestick above the support at 1.6520 on the weekly time-frame, which was a likely signal for a move to the upside. One week later the pair has formed a spinning top candlestick above the same support and on the same time-frame, which is a signal for indecision, rather than a move to the upside. Despite both of those candlesticks the pair is bearish for now and is attempting to continue its move to the downside. Of course, that may not last long, not to mention that there will be a confirmation for a further move to the downside after a breakout below the last low at 1.6520. If that happens the next target will likely be at 1.6100, which is the (MA)89 indicator on the weekly time-frame. On the other hand, to the upside the first likely target is at 1.6935 which is the last high.

EUR/NZD May Start Rising

EUR/NZD has been testing the support around 1.6750 for three weeks and although the pair did break out below it that breakout only resulted in the hammer candlestick that formed at that support level on the weekly time-frame. In combination with the pair of inverted hammer candlesticks that have already formed above the aforementioned support level that one is a likely signal for a move to the upside. If the pair does start rising the first target will probably be around 1.7020 – 1.7030. A breakout above that level could in turn lead to a further move to the upside towards the previous high which is at 1.7480, although this is a long-term target.