Weekly Forex Update: EUR/NZD |
EUR/NZD is continuing to fall inside the Falling Wedge chart pattern identified by Autochartist on the daily charts. The overall Quality of this chart pattern is measured at the 5 bar level which reflects the following values of the individual Quality indicators: low Initial Trend (measured at the 3 bar level), above-average Uniformity and Clarity (both rated at the 6 bar level).
This chart pattern continues the prevailing downtrend visible on the daily and the weekly charts. Point A of this chart pattern formed near the combined resistance area made out of the round price level 1.8800 and the 50% Fibonacci Retracement of the preceding downward impulse (which itself started from the 61,8% Fibonacci Correction of the previous longer-term weekly down impulse, as can be seen on the second chart below). Points C and A enclose the sharp upward ABC correction which was completed by the first downward impulse of this chart pattern (from A to D) – breaking the former strong support at the round price level 1.8000 (point C) and stopping at the support level 1.7400 (point D).
The price has recently reversed from the combined resistance consisting of the previous support 1.8000 (now resistance after it has been broken) and the 38,2% Fibonacci Retracement of the first downward impulse of this chart pattern (from A to D) and is expected to fall further in the coming sessions. The last Friday’s Closing price stands near the previous low at 1.7400 (point D) which should be broken for the downtrend to continue.
The following longer-term daily EUR/NZD chart displays the aforementioned technical price levels which have affected recent movement of this currency pair.
About the author: Autochartist
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