EUR/NZD produced a bearish inside bar yesterday. The H4 chart shows that the price after being very bearish had a bounce at a level, where it had a bounce earlier. The price has been in consolidation. The 78.6% Fibonacci level seems to be working as a level of resistance. If the level produces a bearish reversal candle and the price breaches today’s lowest low, the sellers may go short in the pair.
Chart 1 EUR/NZD H4 Chart
The chart shows that the price headed towards the South with good bearish momentum. It had a bounce at 1.79570. As of writing, the price has been slightly bullish in the minor charts. It may remain choppy within 1.79570-1.80335. The level of 1.80335 is the 78.6% Fibonacci level. Thus, the level may work as a level of resistance. If the level produces a bearish reversal candle, the sellers may go short below the level of 1.79570.
Trade Summary:
Entry: Sell below 1.79570
Stop Loss: Above 1.80335
Take Profit 1: 1.78800
Take Profit 2: 1.78360
Take Profit 3: 1.77635