Missed the channel breakout on EUR/NZD?
You might still have a chance at catching the reversal on this short-term pullback!
Brace yourselves, euro bulls!
An uptrend could be in the works for EUR/NZD, as price just busted through the top of its descending channel on the 4-hour time frame.
Before the pair heads any higher, though, a pullback might be needed to gather more bullish energy.The handy-dandy Fib tool shows that the 38.2% level is right around the 1.6850 minor psychological mark and area of interest.
This is also near the dynamic support at the moving averages, which are in favor of the reversal gaining traction. In that case, EUR/NZD could make its way back up to the swing high close to the 1.7000 handle soon.
Stochastic is still pointing lower to show that bearish pressure is in play, so the correction might keep going until oversold conditions are met.
If you’re hoping to catch a more conservative entry, look out for a test of the 61.8% retracement level that’s near the 1.6800 major psychological support.
It would also help to keep an eye out for the eurozone industrial production and trade balance figures due before the end of the week, as number crunchers are expecting to see improvements.
Don’t forget to take the average EUR/NZD volatility into account when setting entries and exits, too!
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