Currency
by Alex Davies on November 2, 2018

EURNZD Analysis – price at a crucial point for investors

EURNZD price is at a point where a breakout could occur in the nearest future. For day-traders and long-term investors, now is a crucial time to make decisions whether to sell or buy the asset. In general, the price has been following a steady uptrend since the beginning of the year. During the last couple of months, the price movement exhibited a double top pattern which is highlighted in yellow on the graph below. The result of the pattern was a steep dip in the price. The two tops in the pattern have also created a horizontal support, which has been breached by the price.

EURNZD Analysis - price at a crucial point for investors

This leads us to conclude that the double top formation was also a false breakout pattern. The steep decline in price has led to a level that is supported by the long-term uptrend line, which is shown in black on the graph above. If this line is breached, a strong long-term sell signal will be triggered. On the other hand, there’s also a possibility of a reversal if the price bounces back after hitting the support line. In this case, the long run positive sentiment will be reinforced as the main uptrend line will hold firm.

 

By Alex Davies

Alex Davies is a long-time trader with a background in statistical analysis. Davies has worked as a financial analyst since 2014 and has been writing technical analyses for various publications since 2015. Davies writes on different financial instruments including stocks, cryptocurrencies and currency pairs.

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