Good day traders! The EUR/NZD currency pair reached the upper median line of a long-term pitchfork and a 50% Fib retracement level last month and immediately reversed lower.
Price is currently approaching the center median line of the same pitchfork, a 0.618% Fib retracement level, and a zone where previous highs were formed during 2019.
These levels/lines create a support zone that lies roughly between 1.7580 – 1.7750 and which could halt the current decline.
I would expect support to hold within that zone, but a bounce higher might eventually result in either a lower high or a period of sideways consolidation. A retracement higher could, however, present another opportunity to short EUR/NZD with a target set at the center median line but getting short now will not have the best reward potential.
Note: Should price break below that support zone, then it would be very bearish for the EUR/NZD with the next level of support at the 0.786% Fib retracement level.
More updates to follow.
Bias: Neutral, but another selling opportunity might present itself after a retracement higher.
Potential support: 1.7580 – 1.7750
Until next time, have a great day and stay safe!