EUR/NZD Inverse Head & Shoulders!

EUR/NZD rallies and is pressuring a resistance area. The price action signaled that the pair could develop an important swing high after failing to confirm a deeper drop. Technically, we still need confirmation before considering going long.

The Euro received a helping hand from the German PPI which has reported a 1.5% growth compared to 0.8% expected.

EUR/NZD Technical Analysis!

The EUR/NZD pair has printed a potential Inverse Head & Shoulders pattern. Activating this chart formation signals strong growth. Jumping and closing above the weekly R1 (1.6721) signals that the price jumps towards the upper median lines (UML, uml).

A valid breakout through the median line (ml) and above the R1 could validate the chart pattern. I believe that the upside scenario could be invalidated by a drop below the weekly pivot point (1.6631).

Conclusion!

A new higher high, closing above 1.6720 today’s high could really announce a potential growth. Its failure to stay below the median line (ML) of the descending pitchfork and under the ascending pitchfork’s lower median line (lml) may signal an upwards movement.

 

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