EUR/NZD strong bullish momentum aims at 1.70 targets

Price charts and technical analysis

The Euro seems posed to be one of the strongest currencies this week with impressive gains against the USD, GBP, and AUD while keeping in balance with the JPY. 

On the other hand, the NZDis mostly on the losing end versus the USD and AUD. With EUR strength and NZD weakness, the EUR/NZD seems ready for more upside:

1. The EUR/NZD chart itself seems to have completed an ABC (purple) correction at the 50% Fibonacci support level.

2. The larger picture remains unclear, whether price action is building an ABC or 123 (red)... But in both wave scenarios, more upside seems likely.

3. The strong breakout followed by a push above the Fractal resistance is confirming a push higher.

4. The intermediate main target is the 610 ema followed by the WIzz 7 level. These levels could create a bull flag chart pattern (grey arrows).

5. A bullish breakout above the flag patterns should send the pair higher. The main targets are located at 1.70, 1.71 and 1.7170.

6. Price remains in an uptrend as long as it stays above the support zone (blue box). A break below the support trend line (green) indicates a deeper retracement (dotted orange lines) towards the 31.8% Fibonacci level.

On the 1 hour chart, the bears have lost control and the bulls seem posed to push price up higher soon:

1. The divergence pattern between the lows (purple line) has confirmed a reversal.

2. Price action has broken above the long-term moving averages.

3. The price action is showing strong momentum to the upside.

4. A corrective pattern respected the 38.2% Fibonacci level and bounced back up.

5. The corrective pattern saw a bullish breakout.

The bulls could push immediately higher. This offers potential on intra-day or intra-week time frames for more upside. 

Eventually a retracement is expected. A bull flag pattern (grey arrows) followed by a breakout could indicate more upside.

The analysis has been done with the ecs.SWAT method and ebook.