EURNZD Downtrend in Play – Key Breakdown & Bearish OutlookThe 4H chart of EURNZD shows a descending trendline resistance, indicating a sustained bearish trend.
Price is rejecting the 1.8850 resistance level, aligning with the 38.2% Fibonacci retracement, reinforcing the bearish bias.
A potential breakdown could lead the pair towards the 1.8726 support level (50% Fibonacci), followed by the 1.8200 key demand zone.
Trade Setup & Levels:
Entry Zone: Below 1.8820 after a confirmed rejection.
Target 1 (TP1): 1.8726 – mid-support level
Target 2 (TP2): 1.8200 – major demand zone & 100% Fibonacci extension
Stop Loss (SL): Above 1.8987 to avoid false breakouts.
Bearish Confirmation Factors:
✅ Lower highs and trendline rejection, confirming downward momentum.
✅ Breakdown of support zones, leading to extended selling pressure.
✅ Fibonacci confluence, reinforcing downside targets.
Conclusion:
A break below 1.8726 will accelerate selling momentum, with 1.8200 as the ultimate bearish target. Traders should watch for confirmation signals before entering short positions. 📉
