Wedge pattern has formed
EUR has been losing power against NZD in the past several days. Lately the price line has made some interesting moves. Above the price there is a dynamic descending resistance and below the price there is a strong dynamic support line. This has formed a Wedge pattern, so we expect the next move to be a sharp ascend or a strong descend.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
The price right now is about 1.665 and is reacting to the dynamic resistance as well as level 0.786 of the Fibonacci retracement which is located at 1.6666. Right below the price, at 1.664 there is a strong support which has been able to pump the price several times already. In case the price can break above the resistance, inside the blue zone, buyers can target 1.676 as their first TP; and in case the ascend is powerful enough, the next possible target would be 1.685. On the other had, if the dynamic support below the price breaks, the sellers can target 1.655 as their first TP, and 1.649 as the other possible one. Note that after breaking through any of the resistances, a retest of the level is possible.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.