Hello traders! On September 18, the EUR/NZD corrective move down has come to an end, while the price tested 1.7447 where it produced a double bottom. At that point, EUR/NZD rejected the average-price downtrend trendline and started to move up quite fast. Price has moved from 1.7447 up to 1.7875 in just 6 trading days, resulting in a 2.46% growth.
Pullback followed and EUR/NZD corrected down to 1.7711, where it cleanly rejected the 38.2% Fibonacci retracement level as well as the 200 Exponential Moving Average. Perhaps this was the end of the pullback and now the uptrend can be expected to continue.
As long as daily closing prices remain above 1.7700 psychological support, EUR/NZD could rise as high as 1.8080 resistance confirmed by two Fibonacci retracement levels. The first being 23.6% Fibs applied to the last wave up when price topped out near 1.8200 resistance area. The second is 227.2% Fibs applied to the current pullback. Besides, the upside target also corresponds to the simple uptrend trendline, which was broken to the downside previously, but might act as the resistance in the future.
Bias: Strongly bullish while daily closing prices above 1.7700 psychological support.
Potential Support Zone: 1.7700 – 1.7750
Potential Targets: 1.8080
Have a profitable trading!