EUR/NZD is showing a strong bullish reversal at the Fibonacci levels and bullish breakout above the resistance.
The EUR/NZD is showing a strong bullish reversal at the Fibonacci levels and bullish breakout above the resistance. The bullish outlook was expected in our previous analysis where we analysed that a reversal was around the corner.
This article will review whether the reversal can go up even more and if so, what kind of targets are within reach.
The EUR/NZD made a strong bullish breakout above the resistance trend lines (dotted orange lines). This occurred after price action completed an ABC pattern (grey) without breaking the bottom of wave 1 or A (pink).
On the 4 hour chart, price action is showing a wave 1-2 pattern. The current strong impulse – which broke above the -100% Fibonacci target – is typical for a wave 3 (orange), either of a larger wave C or 3 (pink) which is yet to be determined.
Good trading,
Chris Svorcik
The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter
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Chris Svorcik is co-founder, trader, and analyst with Elite CurrenSea (www.EliteCurrenSea.com) since 2014.