EUR/NZD produced a bullish engulfing candle in the daily chart yesterday. The price consolidated within two horizontal levels. Yesterday’s candle may push the price towards the North and make a breakout at consolidation resistance. If that happens, the price may head towards the North and make a long bullish wave. Intraday charts suggest that the pair may make a bullish breakout at yesterday’s highest high as well. Thus, the pair may end up producing another bullish candle in the daily chart today. Let us now have a look at three vital charts.
Chart 1 EUR/NZD Daily Chart
The chart shows that the price had a bounce at the level of 1.73175 and produced a bullish engulfing candle. The combination of the last three candles has produced a Morning Star, which is one of the strongest bullish reversal patterns. The buyers may wait for the price to breach yesterday’s highest high and go long in the pair. The price may find its next resistance around 1.79750. On the contrary, if the price produces a bearish reversal candle at the level where it is trading now, it will be considered as double top resistance. It may get choppy within these two levels.
Chart 2 EUR/NZD H4 Chart
The chart shows that the price had a bounce at the level of 1.73375 and produced a bullish engulfing candle. It made a bullish move and consolidated. As of writing, the price has been bullish in the current candle. The buyers may go long in the pair if the candle closes above consolidation resistance. The price may find its next resistance around 1.76800. If the price produces a bearish reversal candle, on the other hand, it may get bearish and find its support around 1.73375.
Chart 3 EUR/NZD H1 Chart
The price made a strong bullish move and made a bearish correction. The level of 1.74600 has been working as a level of support. It produced a bullish Marubozu candle. The price has been heading towards the North. It may get more bullish above 1.74980. The price may find its next resistance around 1.75700. However, the sellers may wait for the price to produce a bearish reversal candle around yesterday’s highest high and make a breakout at 1.74600 to go short in the pair. The price may find its next support around 1.73855.
The daily, the H4, and the H1 chart look very good for the buyers. Buyers in these three charts are to wait for a breakout at yesterday’s highest high to go long in the pair and push the price towards the North. Considering these three charts, it seems that the bull may dominate today and in the coming days.