EUR/NZD can we go lower…...yes, we can!
Last week we updated this pair as to whether or not we could continue lower and what the next short target could be.
Though we could see the bearish movement and price action had started to slow down and started to find some support at the daily support level of 1.7300 , we could see that we were still overall bearish on the higher time frames, which was giving us the bigger picture of the overall direction and we also could see that price action was playing out to a daily / 4 hour Fibonacci retracement as we had rejected the 50% fibonacci level and we had our extensions levels as a targets if we could break the daily support.
A week later and we have now broken the daily support region helped with the NZD bulls pushing this pair lower after today’s monetary policy statement and press conference that followed helping the NZD turn positive on the day and created the new found strength to give the NZD a push that was needed.
The NZD bulls pushed this pair down to our first Fibonacci extension at 1.7218 and even went on to hit a low of 1.7150 which achieved +490 PIPS for the BDFOREX community with a short trade we have now been holding for 4 weeks!!
Nearly 500 PIPS in one month on one currency pair showing the power of swing trading and patience in the market!
From here we still look bearish as after a small retracement today the bears are continuing to push this pair lower. Now the daily support region of 1.7300 has been well and truly broken there is not much support for this pair and we can easily see this pair slide lower to our second Fibonacci level of 1.7090.
IF the bulls were to step in we may see a rally back to the broken support region of 1.7280-1.7300 but right now the bulls are nowhere to be seen!