EURNZD Potential Breakout or Reversal? | Technical Analysis

EURNZD Potential Breakout or Reversal? | Technical Analysis 🚀🔄

The chart illustrates a key technical setup on the EURNZD pair with both bullish and bearish possibilities depending on price action near critical zones.

🔍 Technical Highlights:
Bearish Harmonic Pattern Completed 📉
A harmonic structure has formed and completed near the resistance zone (~1.9500), triggering a bearish move towards the target at 1.90688.

Major Resistance Zone 🔺
Marked between 1.9450 - 1.9500, where previous price action showed strong rejection (highlighted by the red arrow). This remains the key zone to break for further upside.

Support & Breakout Zone 🟦
The price bounced off the support zone around 1.9068 - 1.9100, aligning with trendline support and a previous structure level. This zone also aligns with the target of the bearish harmonic move.

Trendline Retest & Bullish Continuation Possibility 🔼
The price broke above the bearish leg and is now consolidating. If price closes above 1.9350-1.9400, a potential breakout toward the 1.9500 resistance zone is expected (blue arrow).

🔄 Scenarios to Watch:
✅ Bullish Case:
Break and hold above 1.9400

Target: 1.9500 Resistance Zone

Confirmation: Strong bullish candles with volume above current range

❌ Bearish Case:
Rejection at current level (near 1.9350-1.9400)

Target: 1.9068, the harmonic completion target and support zone

Confirmation: Bearish engulfing/rejection candle with trendline break

📌 Conclusion:
EURNZD is at a crucial decision point. Watch closely for a breakout above or rejection from the current price range to determine whether the pair will retest highs or complete the bearish target move.