🔥 EUR/NZD Bearish Breakout after ABC Pullback at 144 ema 🔥

2 min read

Dear traders,

the EUR/NZD is in an established downtrend. Price has recently made an ABC pullback towards a heavy resistance zone (red box). What’s next?

EUR/NZD

4 hour chart

The EUR/NZD needs to break below the 21 ema zone and the support trend line (blue) to confirm the downtrend continuation (green check). A breakout, flag, and continuation pattern would be the best pattern for any potential short setups. The main targets are the round level of 1.70 and 1.6925.

A break above the long-term moving averages would break indicate a break above resistance and invalidate (red x) the bearish outlook. The current pullback is probably an ABC (blue) wave in wave 4 (purple). The bearish breakout could complete a wave 3 (purple).

The analysis has been done with SWAT method (simple wave analysis and trading).

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Good trading,
Chris Svorcik
Elite CurrenSea

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