EURNZD:- Price Remains In Daily Ranges
EURNZD:- In recent weeks price has accelerated 700 pips back into the resistance zone of 1.71180 but has now stalled for 5 days in consolidation in forming spinning tops, creating indecisive behaviour. This is typical having potentially now formed a new Higher High with price indication a slow in down in market momentum and deacceleration.
On the 4-Hour timeframe, we can see how daily ranges are trapping the price like building blocks. The price currently floats around the weekly key level of 1.70500 but has a daily support floor of 1.7000. If this region was to sustain a break and close below we could quickly see a 140 pip drop into the next level of support at 1.6860
This, in turn, may begin to form the leg of a right shoulder for a head and shoulders formation to take another opportunity upon any further retest of the key level of 1.7000.
For now, we concentrate on the directional break, I favour the bearish momentum, however, we may see another run at the highs of 1.71180 before falling which may provide us with a better area for entry as this has been a huge supply zone previously.
It's certainly one for the watchlist and either a break of the structure or a retest of the previous highs will provide an entry opportunity.