EURNZD: Price to Break from Support Level

The EURNZD price could go higher sooner.
Buyers may take the lead and control of the trend.

EURNZD Weekly Price Analysis – January 23

The EURNZD pair may break from the support level and could see an uptrend as it is about to resume its bullish rally. The currency pair has been in a downtrend for a long time and is on the verge of a reversal on the daily session, breaking through the resistance. The selling pressure may not occur as the market is already oversold, and the pair may be ready for an upward surge. Given this, if the bulls increase their actions and wrestle trend control from the bears at the current low of $1.98, the price may rebound and turn positive to retest the previous barrier of $2.04 and surge to meet the upper resistance level at $2.06, indicating high conviction from buyers.

EURNZD Market
Key Levels:
Resistance levels: $2.00, $2.01, $2.02
Support levels:    $1.98, $1.97, $1.96

EURNZD Long-term Trend: Bearish (Daily Chart)

 

The momentum of the EURNZD pair in the long term (daily) is undeniably bearish. The prices are below the moving averages, indicating a bearish market.
The price has been below the supply since its recent low due to persistent bearish pressure over the last few days.

As the daily chart begins today, bearish actions sent the EURNZD price lower, reaching the $1.98 support level below the EMA-50.

Hence, the bullish momentum might be triggered, and the price may likely reverse and increase to break the previous high if the current support remains and the bulls swing their buying pressure.

Additionally, the EURNZD market price has reached oversold territory, and further losses may not occur.

Thus, the currency pair may begin its ascent shortly. Therefore, we can now grow in confidence that a potential buy is approaching.

In light of this, price increase may reach the upper resistance level of $2.06, suggesting a robust supply zone for a possible buy in its higher time frame.

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

The EURNZD pair is bearish on the medium-term view. The currency pair has resumed its bullish rally as selling pressure has ended. The price action is below the moving averages, suggesting a bearish trend.
The bearish impact on the pair at the $1.98 low level in the previous action has contributed to its bearishness in its recent correction.

Nevertheless, the bulls will take the lead soon and push higher as the market is already oversold.

At the time this article is written, the EURNZD pair made a pullback at the $1.99 supply level below the EMA-50 today, resulting in an intraday gain for the bulls.

Thus, a close above the $2.04 prior barrier will signal a sustained upward momentum.

Likewise, the current price correction suggests that the bulls may take the lead in the market.

Additionally, the EURNZD price may experience a bullish breakout if the bulls increase their tension in the market, as signaled by the daily stochastic pointing up.

As a result, the next target could be the $2.06 high trend mark in the medium-term perspective.

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