The market structure on EURNZD is bearish, but the market just tapped the strong support/demand level. Therefore, we anticipate a reversal from here for a corrective move, or maybe a trend reversal.

There is no current retracement on the H4 level, which can factor up with the support level. 

EURNZD is in a descending wedge channel. There might be a push up which would induce trendline breakout buy. With that, we will have another confirmation to add to our long position. 

Both EMA's are bearish, with a death cross representing a bearish bias. When market broke the EMA's downwards, it was unable to retest it earlier. This means, there is a correction due towards the upside to retest the EMA's. 

Oscillaotrs have been in an over sold region and also formed divergence buys, only on the oscillators. We don't see any divergence on the price, except for the support trendline. 

EURNZD has few factors to add up to the position of a buy. It is a risky trade and we will take our hit once market breaks the support. On the other hand, given that the support level is strong, we can easily assess the probability of a long position at this level. The 1:3 risk to reward ratio trade is something we don't want to miss.

1:3 longs on EURNZD

Sep 02 2021

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