EUR/NZD BREAK ABOVE THE TRIANGLE AND TOUCH 200EMAOn Friday, EUR/NZD traded slightly higher after hitting support at the 1.5845 barriers. However, the advance continued somewhat today as well. It remained limited near the 200-EMA after the price break through the upper triangle line and the 1.6075 key resistance zone, which stopped the rate from drifting further north on Thursday and back on March 31st. The traders prefer to wait for a break above 1.6075 before getting confident about further advances, but they are looking for a potential upside movement after the triangle break.
Such a break will confirm a forthcoming higher high on the 4-hour chart and may pave the way towards the 1.6330 zone. The bulls may decide to take a break after testing that zone, thereby allowing the rate to correct lower. However, if they are willing to recharge, the investors would expect the forthcoming positive wave to overcome the 1.6330 zone, and perhaps extend towards the 1.6775 territories or higher to 1.7164.
Our short-term oscillators see that the RSI is above 50 but has just ticked down, while the MACD stands slightly above both its zero and trigger lines. Both indicators detect positive speed, supporting further advances, but the fact that the RSI ticked down makes us care that a small retreat may be on the cards before the next leg north.
To start examining the bearish case, the traders would like to see a fake breakthrough of the triangle and an apparent dip below 1.6000. The bears may initially target the 1.5711 zone. Another break below that zone or 1.5620 would confirm a forthcoming lower low on the daily chart and perhaps aim for the 1.5500 zone.
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