After getting rejected on its long-term range resistance, EUR/NZD now seems to have its sights set back on testing support.

Will the ground hold again?

Take a take a look at these inflection points I’m watching on the each day time-frame:

EUR/NZD Day by day Forex Chart by TradingView

A mix of risk-on flows and comparatively upbeat data from Latest Zealand appear to be propping the Kiwi higher today while the euro is being dragged south by downbeat CPI reports.

EUR/NZD recently fell through the neckline of a short-term triple top pattern, sending it further south from the long-term range resistance near the 1.8300 handle and closer to testing the important thing support zone at 1.7500.

Are we in for a bounce or a break soon?

Do not forget that directional biases and volatility conditions in market price are typically driven by fundamentals. Should you haven’t yet done your homework on the euro and Latest Zealand dollar, then it’s time to envision out the economic calendar and stay updated on each day fundamental news!

The 100 SMA is above the 200 SMA to suggest that the trail of least resistance is to the upside or that the range support is more prone to hold than to interrupt. However, EUR/NZD is trading below each moving averages, so these could hold as near-term dynamic resistance levels around 1.7800.

Price appears to be falling through S1 (1.7700) for now, suggesting sustained bearish momentum to the subsequent support zone or a possible breakdown, which could set off a chronic downtrend that’s the identical height because the rectangle pattern.

Just be certain that to maintain your eyes peeled for either reversal or continuation candlesticks to gauge where EUR/NZD might be headed next.

Whichever way you choose to play this setup, be certain that you practice proper risk management and take a look at our newly launched forex correlation tool!