Is that a reversal formation being completed on the 4-hour chart of EUR/NZD?
If so, then the pair might be in for a downtrend later on.
Better keep your eyes on these levels if you want to catch a big move!
It looks like euro bulls are getting exhausted from charging!
EUR/NZD is forming a head and shoulders pattern on its 4-hour chart, with the pair already getting ready to test the neckline.
A break below this support zone around the 1.7200 major psychological level could set off a drop that’s at least the same height as the formation.
That’d be more than 800 pips yo!
Moving averages are looking in favor of a change in trend, as the 100 SMA just crossed below the 200 SMA to signal that sellers are taking over.
The pair is also trading below both indicators, so these could hold as dynamic resistance levels.
However, Stochastic still seems to be heading higher after recently pulling out of the oversold region. In that case, EUR/NZD might still bounce off support until bearish pressure picks up again.
Don’t forget that the RBNZ May 2023 policy decision is coming up next week, so we might see Kiwi traders pricing in their expectations for the top-tier event soon!