EURNZD:Likelihood of Convergence of 2 Emerging Harmonic Patterns

Hello traders,

Trust you are doing great.

Below is my analysis of EURNZD currency pair.

The EURNZD pair, currently trading at 1.78462, is showing potential for a rally due to the convergence of two emerging harmonic patterns: a bearish Cypher and a bearish Butterfly. Both patterns suggest a potential move toward 1.81648, where their D leg projections align.

Key Highlights
Bearish Cypher Pattern:
X Leg: 1.82737 (October high)
A Leg: 1.78362
B Leg: 1.80714
D Leg Target: 1.81648

Bearish Butterfly Pattern:
X Leg: 1.80714
A Leg: 1.77412 (November low)
B Leg: 1.80401
C Leg: 1.77857
D Leg Target: 1.81648
The convergence at 1.81648 strengthens its significance as a potential resistance level and a critical zone to watch for a reversal.

Invalidation Point
A break below 1.77412 (November low) would invalidate both patterns and shift the outlook to bearish.

Conclusion
This alignment suggests a short-term rally, but the bearish nature of both patterns implies a possible reversal near 1.81648.

Do let me have your thoughts.

Cheers and happy trading!

交易進行

+155pips done so far, about 200pips more to go.