EURNZD: Possible Reversal at the $1.88 Support Level

The EURNZD pair may experience reversal at the $1.88 support level.
Buy traders might take the leading afterwards.

EURNZD Weekly Price Analysis – June 6

The EURNZD pair is warming up for a possible reversal at the $1.88 current support value as the selling pressure is ending soon, reaching the oversold region. A bullish breakout confirmation that closes above the $1.98 resistance level would indicate that the market is feeling more optimistic. Due to this, buyers will have a stronger foundation to extend this recovery. Therefore, a post-retest rally could push prices higher and reach the resistance trend level of $2.00, if all support levels hold.

EURNZD Market
Key Levels:
Resistance levels: $1.83, $1.84, $1.85
Support levels: $1.73, $1.72, $1.71

EURNZD Long-term Trend: Bearish (Daily)

EURNZD is on the verge of an upside reversal and has a bearish posture in the long term perspective. The price is below the EMA-50, indicating a downward momentum and the high impact of sellers in the market.
The sell traders made a downward move to the $1.89 support level before the end of yesterday’s session. This gave sellers more strength to continue with the trend in its recent low.

Hence, the currency pair is now oversold and is on the verge of an upside reversal.

The EURNZD price dropped even further today, reaching a low of $1.88 below the supply levels as a result of the sell traders’ actions.

However, if a renewed surge in buyers’ interest occurs, the Yen price may undergo an upside reversal at the $1.88 low level to retest the prior high of $1.98 level, providing buyers with great recovery potential,

In conclusion, the pair is on the verge of an upside reversal as the market has fallen to the oversold region of the daily stochastic, implying that the selling pressure is likely to end soon and will compel buyers to resume sooner.

Hence, the next bullish corrective pattern may extend to the $2.00 high mark in the days ahead in its long-term perspective.
Thus, buyers must wait for the action before taking a position.

EURNZD Medium-term Trend: Bearish (4H)

On the medium-term chart, EURNZD is showing a downward movement and is still on the verge of an upside reversal. This is clear as the price continues to make lower highs and lower lows.
Actions from the short traders at a $1.89 low value in the last few hours have dropped the Yen price beneath the supply trend lines in its recent low.

The market price of EURNZD drops further to a $1.88 low mark below the two moving averages as the 1-hourly session opens today due to low bullish momentum.

Thus, if buyers eventually wrestle trend control from sellers and rebound from $1.88 support, a positive breakout above the $1.91 high value is needed to confirm the potential Bull Run.

In continuation, the market price of EURNZD is in the oversold region of the stochastic, suggesting that the selling pressure has reached an exhaustion, the expected upside move in the price could be high at $2.00, level in the coming days in its medium-term outlook.

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