FXstreet.com (San Francisco) - Tuesday saw the EUR/NZD cross spike to a three-month high, reaching as high as 1.5880 before pullback to close the NA session virtually unchanged at 1.5791.
The mentioned price action resulted in the print of a daily Pinocchio bar, or ‘pin’ bar, which often forms at market highs and lows. In this instance, the pin formed at horizontal resistance at 1.5820 (April 13 low) and within an underlying bearish trend bias, which suggests EUR/NZD may be primed for a correction.
So far this Wednesday, the market has traded a tight 1.5750-1.5795 intraday range, last at 1.5770, down around 20 pips in late Asia. If price manages to break onto lower ground, support lies at 1.5625 (55 EMA, 4h). Daily RSI hovers in overbought territory, last valued at 71.
The mentioned price action resulted in the print of a daily Pinocchio bar, or ‘pin’ bar, which often forms at market highs and lows. In this instance, the pin formed at horizontal resistance at 1.5820 (April 13 low) and within an underlying bearish trend bias, which suggests EUR/NZD may be primed for a correction.
So far this Wednesday, the market has traded a tight 1.5750-1.5795 intraday range, last at 1.5770, down around 20 pips in late Asia. If price manages to break onto lower ground, support lies at 1.5625 (55 EMA, 4h). Daily RSI hovers in overbought territory, last valued at 71.
