Hello Traders,
Here is the Top-Down Analysis of EURNZD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 48 - Nov 23
M > Market is moving in a rising wedge with few major breakouts. Price faced rejection at monthly resistance and has dropped till monthly support.
W > Price has filled in last weekly candle with current drop and created double bottom. We can see two M formations and their neck can be our bullish target.
D > Price dropped till weekly support and moved upwards after rejection, last week price dropped to test support again and ended the week with rejection. We can see bullish divergence.
As per COT EUR saw addition of both Long and Short, reducing net positions further. EXY weakened during the said period however it slightly recovered last week. NZD further added both Long and Short improving net positions to max for the year, ZXY has been gaining strength for past 3 weeks, it is now testing a major resistance level.
Institutions, since August, have been reducing their EUR portfolio of Long and increasing Short positions, with about 60K Long positions closed and 19K short positions opened so far. In long term we can expect weakness of EUR to continue. For NZD we can expect some correction to the downside this week.
4H > Price has faced rejection at support and has created double bottom. We can also see bullish divergence. However we will wait for reversal confirmation with creation of a HH and next HL will provide a nice entry for Long.
Recommendation > Keep a close watch with other NZD pairs as it will be NZD that will drive EURNZD now.
Pair Correlation > EURNZD has negative correlation with NZDCHF, NZDUSD, NZDCAD and NZDJPY.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of EURNZD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 48 - Nov 23
M > Market is moving in a rising wedge with few major breakouts. Price faced rejection at monthly resistance and has dropped till monthly support.
W > Price has filled in last weekly candle with current drop and created double bottom. We can see two M formations and their neck can be our bullish target.
D > Price dropped till weekly support and moved upwards after rejection, last week price dropped to test support again and ended the week with rejection. We can see bullish divergence.
As per COT EUR saw addition of both Long and Short, reducing net positions further. EXY weakened during the said period however it slightly recovered last week. NZD further added both Long and Short improving net positions to max for the year, ZXY has been gaining strength for past 3 weeks, it is now testing a major resistance level.
Institutions, since August, have been reducing their EUR portfolio of Long and increasing Short positions, with about 60K Long positions closed and 19K short positions opened so far. In long term we can expect weakness of EUR to continue. For NZD we can expect some correction to the downside this week.
4H > Price has faced rejection at support and has created double bottom. We can also see bullish divergence. However we will wait for reversal confirmation with creation of a HH and next HL will provide a nice entry for Long.
Recommendation > Keep a close watch with other NZD pairs as it will be NZD that will drive EURNZD now.
Pair Correlation > EURNZD has negative correlation with NZDCHF, NZDUSD, NZDCAD and NZDJPY.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX