Bullish Setup On EURNZD
FХ Strategist & Financial Commentator
After setting the yearly top around 1.99 area in the second half of March, the New Zealand dollar has restored its relative strength, starting a bearish rally with the quotes to fall towards 1.76 area building a triple bottom figure, around the resistance zone set between September and October 2019.
During yesterday’s session, after setting a new bottom around 1.7600 area, a bullish rally has started bringing the quotes back towards 1.7800 area, with the first rising closure of the week.
Looking at the RSI indicator, we can detect a bullish signal after the test of the oversold level set on Tuesday’s session, while the average true range is continually falling, and this element should favour the continuation of the trading range anticipating a bounce for this pair.
The setup would be activated in case of a breakout of yesterday’s tops at 1.7880 area. The stop loss must be placed at 1.7580, while the target price could be expected around 1.8180 area, around the resistance generated between the end of April and the beginning of May.
As always I recommend to trade carefully and to plan at best every move. Don’t forget to subscribe to NBH Markets YouTube Channel to stay up to date with the financial markets! Have a good trading and see you for the next video.