EURNZD shows a potential bearish reversal setup after hitting the resistance zone at 1.9100. The price has rejected from the 0.786 Fibonacci retracement level, aligning closely with the psychological resistance at 1.9100 — forming a double confluence.
A potential short-term retracement is expected toward the 1.88300 zone, which is projected by the 1.618 Fibonacci extension and acts as a round figure support level.
🟩 Key Levels:
- Resistance: 1.9100 (also recent swing high)
- Expected Target: 1.88300
- Invalidation Above: A clean breakout and close above 1.9100
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📍 4H Chart Analysis
A Head and Shoulders pattern is clearly forming on the 4H timeframe. The price is currently testing the neckline zone, and if a breakdown occurs, it may confirm a deeper bearish movement, adding higher timeframe support to the bearish idea.
This structure further strengthens the bias that the recent bullish retracement might have ended, and the next leg could be downward toward the expected zone.
The confluence of Fibonacci levels on the 1H chart and the bearish Head & Shoulders formation on the 4H chart suggests that bears might take control below 1.9100. As long as the price stays under this key resistance, the bearish outlook remains valid, targeting 1.88300.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.