EURNZD: Bearish Run May Continue

The EURNZD selling pressure may increase Further.
Sell traders might take the leading in the market soon.

EURNZD Weekly Price Analysis – November 21

The EURNZD bearish run may continue, following the brief return of short traders in the market at the $2.05 support, as the new drops begin above the supply level. The selling pressure progressing towards the support level may intensify if selling traders increase their aggression and break down the $1.88 prior low value. In this case, the potential slump may reach the $1.85 lower support level, suggesting a sell signal and entry point for short traders.

EURNZD Market
Key Levels:
Resistance levels: $2.06, $2.07, $2.08
Support levels:    $2.04, $2.03, $2.02

EURNZD Long-term Trend: Bullish (Daily Chart)

The EURNZD pair is bullish. The price bar is in red above the supply level, indicating that the long-term chart is in a bullish momentum.
The bullishness in its recent position has been aided by the strong order flow at the $2.06 high value in the previous trading session.

Today’s daily chart opens on a bearish note at the $2.05 support level mark above the EMA-50, implying that the bearish trend has just begun, and this may continue.

Thus, if the selling pressure persists, the EURNZD price may drop to the previous low value of $1.88, preventing further bullish continuation.

Additionally, the daily signal pointing down at the overbought region suggests the overall outlook shows downward momentum and may drop further to a $1.85 lower support level in the days ahead, offering a good entry point for short traders in the higher time frame.

EURNZD Medium-term Trend: Bullish (4H)

Despite the bears’ action, the EURNZD pair is bullish on the medium-term view. The price is above the resistance level, indicating a bullish trend.
The bulls’ high order flow to a $2.06 supply level in the last session has contributed to the pair’s strength in its recent high.

However, at the press time, the bears’ activities caused a decrease in the market value of EURNZD to a low of $2.05 above the moving averages as the 4-hourly session opens today, suggesting short traders are returning to stage a play.

Such a move suggests that the bearish run may slump further as sellers return to the market, putting any buying pressure on hold.

Therefore, a 4-hour candle closing and a breakdown below the $2.00 low barrier will provide sellers a strong foundation to drive the EURNZD price lower, providing short traders an excellent entry opportunity.

In addition, dropping towards the oversold region, as indicated by the price projector, shows a high possibility for bearish continuation, setting the stage for a potential drop to the $1.85 lower support level before the bulls resume in the medium-term forecast.

Thus, sellers must wait for the action before taking a position.

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