EURNZD Analysis – On the up trendline

Today, we already talked about one pair with the NZD (NZDUSD) so now time for another one- EURNZD. Situation here is very interesting as currently the price is in a crucial place. Time to make a decision is now and this decision should implicate, what will happen in the next few weeks.

Let me start from the very beginning. Since the beginning of the 2017, the price is in a strong up trend. Most recently, the price created a double top pattern (yellow), which resulted with a bearish breakout of its neckline. In the same time, that neckline was a horizontal support created by the tops from the end of 2017 and July/August 2018. In this way, the double top formation is in the same time a false breakout pattern. That resulted with a significant downswing which aimed the long-term up trendline (blue). And here we are, testing this last crucial support.

Price breaking the blue line should give us a legitimate, strong long-term sell signal. The price bouncing from this line, for example with a hammer candle, will protect the positive approach and can be a start of a new upswing.