This is also my second insights for forex cross pairs, I have written one for AUDJPY long ago and ended up in profit:

https://www.finlogix.com/analysis/20210830/audjpy-long-a-bullish-weekly-bounce-might-edge-the-aussie

These are EURNZD’s high timeframe candle patterns:

Weekly Candle: Previous close was a Green Inverted Hammer current is a Small Red Body with short head wick

Daily Candle: Friday close was a Red Long Upper Shadow with Big Body current is Red Body

Among the high timeframe candles, I am interested to see that the weekly close in a Green Inverted Hammer suggesting a short-term recovery but it must be confirmed through a potential spinning top candle daily candle close tomorrow!

The EURNZD based on the 4H chart above is in a clear downward channel after achieving the local high at 1.7940.

However the lows this year at January and February respectively have not been revisited and retraced fully yet if price wants to continue moving lower.

I will focus for short term buy setups only. I think the 1.77 immediate resistance will be targeted soon after the lows of this month holds. Surely there are liquidity levels residing under the lows of 1.7510 but I am not intimidated by them.

My trade plan is to set a long order on a possible swing low intraday which becomes an order block zone from last two week’s lows. The stop loss for this is set at 1.7445 based on my idea that the down trend continues further and deeper before the 1.77 resistance is targeted but I like to get in already at 1.7535 and I’m comfortable for a 2.22 risk:reward ratio.

This analysis plays out after a new higher low is printed, then the moving up commences toward the said 1.77 resistance as my take profit target.

Remember that both the ECB and RBNZ’s official cash rates remain unchanged but the Euro has moderate strength versus the Kiwi. At least for now.

EURNZD Intraday Analysis and Trading Plan For February 19, 2024

Feb 19 2024

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