Double Top sending the price towards the South

EagleFX Team EagleFX

EURNZD produced a Double Top on the daily chart. Since then the price has been bearish. The price after breaching the neckline had a consolidation around the breakout level. Today's price action suggests that the price may head towards the South again with good selling pressure.

Let us have a look at the EURNZD daily chart.

Chart 1 EURNZD Daily Chart

The chart shows that the price had rejection twice at the level of 1.7580. Then, the bearish journey began with a daily bearish engulfing candle. A bearish engulfing candle at a double top's resistance attracted the buyers and we see the consequence. One of the daily candles breached the neckline level which the sellers must have been eagerly waiting for taking more short entries. After the daily breakout, the pair did not make any downside breakout on significant intraday charts which might have pushed the price towards the downside. It rather had a consolidation. The sellers must have waited for a good-looking bearish daily candle right from that breakout level. Today's price action suggests that their waiting may get over if today's candle closes below the resistance level of the consolidation zone. The way it has been going so far, it is very likely that today's candle is going to close as a strong commanding bearish daily candle. A strong bearish daily candle shall attract more sellers tomorrow to go short on the pair.

Let us now have a look at the H4 chart.

Chart 2 EURNZD H4 Chart

The H4 chart shows that the pair had a correction. It broke the lowest low of the wave earlier today. However, one of the H4 candles (one with long spike) engulfed all of today's H4 candles. That might have wiped off many intraday traders' stop losses. Since the candle closes below today's lowest low, we may get more bearish movement on the H4 chart. This will make the daily candle be a strong bearish candle at the end of today's trading day.

The EURO had two high impact news events called "Monetary Policy Statement" and "Main Refinancing Rate" at GMT 12.45. That massive bearish candle with a long upper shadow is the consequence of those two news events. There is another high impact news event called "ECB Press Conference" at GMT 13.30. The press conference will be held on declared monetary policy. Most probably it would not create as much volatility as the main event had created earlier. It usually does not create more volatility than the main event, but if it does, it could create extreme volatility in the market.

100% Anonymous Trading on EagleFX - Trade NOW!

Author

EagleFX Team

EagleFX

EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.