EUR/NZD Forecast for January 22, 2021
Looking at the chart on the weekly time frame, what is very important to us now is the break below the moving average of the MA200 (purple line), which has been supported since August 2017. In the first week of January, the pair went below the MA200 for the first time. Further consolidates with a slight upward shift. Now the psychological level for the EUR/NZD pair is 1.70000, and at the moment, we can pay attention to how the pair behaves at this level to determine the continuation of the trend.
By setting the Fibonacci retracement level, we see that the EUR/NZD pair first declined from 38.2%, then from 50.0%, and continued down to lower levels. Under such a scenario, our target is a Fibonacci level of 61.8% at 1.65000.
On the daily time frame, we see that the EUR/NZD pair finds support at 1.68000 with a smaller pullback to 1.70000 as a test for that level. If the EUR/NZD pair makes a break above 1.70000, they will get the support of MA20 (light blue line) with the potential to climb first to 1.70700 and then to 1.72000. Otherwise, a break below 1.68000 opens the way to 1.66000 and an even lower psychological level to 1.65000. The trend is still very bearish, with possible pullback and minor consolidations.
On the four-hour time frame, we see that the EUR/NZD pair is testing the moving average of the MA100 (blue line) and that there is now the possibility of a smaller pullback to 1,70700, where the moving average of the MA200 awaits us. Above, a trend line awaits us as a potential resistance to higher levels. If we see a break above that trend line after that trend line, we can expect a continuation of up to 1.73000 resistance zone of the previous high.
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