Missed the channel breakout on EUR/NZD?

You may still have a likelihood at catching the reversal on this short-term pullback!

EUR/NZD 4-hour Forex Chart by TradingView

Brace yourselves, euro bulls!

An uptrend could possibly be within the works for EUR/NZD, as price just busted through the highest of its descending channel on the 4-hour timeframe.

Before the pair heads any higher, though, a pullback is likely to be needed to collect more bullish energy.

The handy-dandy Fib tool shows that the 38.2% level is correct across the 1.6850 minor psychological mark and area of interest.

This can also be near the dynamic support on the moving averages, that are in favor of the reversal gaining traction. In that case, EUR/NZD could make its way back as much as the swing high near the 1.7000 handle soon.

Stochastic remains to be pointing lower to indicate that bearish pressure is in play, so the correction might keep going until oversold conditions are met.

Should 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 will also help to maintain a watch out for the eurozone industrial production and trade balance figures due before the tip of the week, as number crunchers expect to see improvements.

Don’t forget to take the common EUR/NZD volatility under consideration when setting entries and exits, too!

This content is strictly for informational purposes only and doesn’t constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to be certain that you understand the risks involved.