NZDCHF Analysis - Major supports are gone

Tomasz Wisniewski Axiory Global Ltd.

On the 29^th of October we wrote a piece about the NZDCHF. In that analysis, we were bullish and that was a great call. Since our piece was published, the price climbed more than 150 pips higher and made new mid-term highs. Today, we will continue our positive approach towards the NZD but we will change the second currency in the pair. Our hero for the 5^th of November is the EURNZD.

The pair is sharply falling down since the 8^th of October. From the technical point of view, the decline is caused by the double top formation (yellow rectangle). What is more, the double top pattern, in the same time, is a false breakout formation, above the orange resistance. Combination of those two factors, gave us a strong decline, which allowed the price to break the long-term up trendline (blue). That is a very negative sign and opens us a way towards the 1.655, so the lows from January and June. Most probably it will not happen just like that and we will need a bullish correction in the meantime but chances for the price to get there are very high.

To sum up: Our outlook on this instrument is definitely negative and we see a big chance for a further drop. Entering right here, right now is a bit too risky though, mainly because it seems that the EURNZD can be oversold at the moment. To be honest with you, I would prefer to wait for the bullish correction first.

Author

Tomasz Wisniewski

Axiory Global Ltd.

Tomasz was born in Warsaw, Poland on 25th October, 1985.

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