For Traders

Analytical Reviews

Technical analysis

05.06.201212:56 Forex Analysis & Reviews: EUR/NZD long-term trend still down

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Clearly EUR/NZD established a long-term downtrend. Before this, EUR/NZD failed to break above R2 (1.57 area) that would confirm a new higher high. While every new low being lower as well as every new high being lower, bears should be dominating in the mid-term future.

With two different downtrend trendlines applied to the chart, a strong resistance area has come into play. This is R1 level (1.54), which is also a round number and a psychological barrier. Early this week, both trendlines have been rejected suggesting that down trend might continue.

Now, it seems wise to start looking for sell opportunities on pullbacks as the market could be too low to enter the short trade at this point. Target either S2 (1.4820) or S3 (1.4636) support levels.

Support: 1.5039, 1.4819, 1.4636

Resistance: 1.5398, 1.5679

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.