EURNZD: Bearish Trend May Continue

The EURNZD bulls may lose control.
The currency pair could drop further despite a bullish threat.

EURNZD Weekly Price Analysis – January 2

The EURNZD pair has just begun its bearish trend, and this may continue as sellers anticipate further downturn at the supply level. The chart indicates a bullish structure, yet the bears have taken over above the moving average as the buying pressure seems to be subsiding. Thus, a further increase in the bear’s momentum may break down at the $1.90 level, propelling the currency pair price towards the $1.88 lower support level and suggesting a sell trade for the short-term traders.

EURNZD Market
Key Levels:
Resistance levels: $2.04, $2.05, $2.06
Support levels:    $1.96, $1.95, $1.94

EURNZD Long-term Trend: Bullish (Daily Chart)

In the long term, the EURNZD pair appears bullish despite the influence of the bears. The price bar is in red above the moving average, suggesting a bullish trend.
The sustained bullish pressure at $2.04 in the last session has enabled the price to maintain strength above the supply levels in its recent price level.

However, the bulls may lose control as the market buying pressure has been exhausted.

Despite the interference by the bears, today’s daily chart at the $2.03 support level above the EMA-50 indicates that the EURNZD pair is in an uptrend.

It’s worth noting that the bulls may lose control. The current low value at the top range could experience a bearish continuation to another barrier below the resistance at $1.92, a lower support range if the sellers can accelerate their selling momentum; a surge below this level could propel the pair lower by 20%.

Additionally, the stochastic oscillator signal is pointing down at around 59%, suggesting that the EURNZD bears may be in control of the trend.

Hence, the journey downside may lead the price to the $1.82 lower support level in the days ahead. Hence, sellers may wait for this action to commence before taking a position in the higher time frame.

EURNZD Medium-term Trend: Bullish (4H)

The EURNZD bulls are about to lose control over the market as the selling pressure is increasing in the medium-term view.
The Yen price remains above the supply levels, indicating a bullish trend and the high impact of buyers on the currency pair.

Meanwhile, the bulls may lose control sooner as the buying pressure seems to be subsiding.

Actions from the bears further dropped the coin price to the $2.03 support level above the EMA-50 as the 4-hourly chart resumes today, indicating a bullish trend.

Hence, the bulls may lose control, and bearish momentum might be triggered if short traders speed up their action and push the price further.

Thus, the EURNZD price may turn down to break the previous low of $2.00 if the current supply at $2.04 remains unmoved, and the bears increase their activities.

In addition, the daily stochastic is approaching the oversold region, indicating the bears may dominate the market, and the buying pressure is unlikely. Thus, a bearish momentum may continue within the range.

As a result, the $1.82 lower support level might be the target in the coming days in the medium-term forecast.

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