EURNZD: Price Looks for More Downsides

The currency pair is poised for more downsides.
Buying pressure might seize, while the bears take the leading soon.

EURNZD Weekly Price Analysis – August 22

Today, the EURNZD pair looks for more downside as it begins negative moves. The currency pair is in a very important zone. Hence, it is necessary to wait and verify if the price will drop below the resistance to continue its downward trend or pull back. The trend is falling and has not yet reached its goal. Therefore, if bears add more forces to the selling momentum, the price may drop further to the $1.81 support and could extend to a $1.80 lower support level, creating a strong accumulation zone for sell traders.

EURNZD Market
Key Levels:
Resistance levels: $1.98, $1.99, $2.00
Support levels:    $1.81, $1.80, $1.79

EURNZD Long-term Trend: Bullish (Daily Chart)

The EURNZD price looks for a bearish reversal as the pair-buying pressure is winding off in the long-term outlook. Meanwhile, the pair remains in an uptrend despite the moves by the bears, indicating a bullish trend.

The high bullish pressure on the currency pair at the $2.00 supply level in the last action has sustained the price above the resistance in its recent correction.

Nevertheless, sellers will take over the price of EURNZD soon, and a breakdown is imminent.

The EURNZD price anticipates a bearish continuation as the bears dropped the market value to a low of $1.99 above the EMA-50 on the daily chart today, indicating a slight weakness in the bulls’ activity.

Meanwhile, the currency pair price could experience a downturn if the bears increase their grip over the pair: a break below $1.81 is likely to ward off the uphill momentum.

Furthermore, the buying trend is ending soon, and the pair could drop more as the market price of EURNZD is down in the overbought region.

As a result, the currency pair may experience a slump at the mentioned support to reach the $1.80 lower support value in the days ahead as the journey southwards continues on the higher time frame.

EURNZD Medium-term Trend: Bullish (4H Chart)

The EURNZD pair anticipates a bearish reversal as the pair drops slightly above the supply level, indicating a bullish trend in its medium-term perspective.
However, the current trend will soon be nullified as the market is already overbought.

The sustained pressure from the bulls at the $2.00 supply level during yesterday’s session has contributed to its bullishness in its recent drop.

The market price of EURNZD drops further to a $1.99 support value above the moving averages as the 4-hourly session opens today, and looks for a bullish reversal soon.

It’s worth noting that the bulls may lose control, and the downward momentum could face another barrier below the resistance at the $1.80 supply value, suggesting renewed strength in sellers’ interest.

Furthermore, the pair indicates a low trend at the overbought region of the daily stochastic, indicating that selling pressure may continue.

In light of this, the emergence of short traders in the overbought region is crucial, leading the EURNZD price to reach the $1.80 lower support mark in the coming days in its medium-term forecast.

Hence, sellers may wait for this action to commence before taking a position in the medium term.

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