The EUR/NZD is in a key bullish breakout spot and close to starting a wave 5 pattern. However, Italian elections are taking place on Sunday which could impact the Euro’s volatility.
This article analyses the wave patterns, key trend lines, and SWAT software on the EUR/NZD charts.
Wave Patterns EUR/NZD
EUR/NZD pair started a strong bullish momentum 12 months. Here are the 4 main conclusions:
- The pair completed 3 waves on a daily chart and seems close to finishing the correction of wave 4.
- Traders should first wait for more confirmation before trading the anticipated 5th wave. New bullish momentum would provide such a green light and create a higher high in the upcoming month.
- To confirm the start of wave 5 and the new momentum, price must break the resistance trend line of the bearish sub-trend which is illustrated in the below chart.
- A strong bullish daily candle would give us confirmation of a potential bullish break and setup.
EUR/NZD Daily Chart View with SWAT Software
Now it’s time to use the SWAT charts to pinpoint potential trade setups within the expected wave structure and patterns.
The SWAT charts are indicating a similar bullish chart but some developments are still required:
- Break above resistance trend line.
- Price needs to break Murry Math level around 1.696.
- There is bearish divergence between the most recent bottoms.
- Waiting for the bullish breakout is the main confirmation. The final target at is 1.7480 or higher as wave 5 usually ends beyond wave 3 .
EUR/NZD 4 hour Chart View with SWAT Software
The 4 hour chart is trying to break above the resistance trend line but waiting for the actual breakout is key. Why? Because price may bounce at the resistance line and create a pullback. Waiting for the daily confirmation to appear is a must.
Ahmed Darwish Twitter