Some pretty nice development on this trade pair and while we have this across the board Euro lower lows, we cannot be so sure and short unless there are strong confirmation.
At the moment, there is something positive we can talk in this pair and we have a close look at price developments in the weekly chart we notice a bear break out below a 12 month support trend line last week.
The thing is, a confirmation and a close below 1.68 is needed in this otherwise bullish trend. Besides the break below main support trend line, bears are also testing the 20 period MA which we have seen is complementing this support trend line.
In the daily chart, we have a clearer picture and while momentum continues to move lower, it is likely that any consequent bear candlesticks might band along the lower BB as prices trickle lower. All we need today is a sell confirmation and a clear close below the support-now resistance trend line in the weekly chart. This means our EURNZD plan will be as follows:
Sell Stop: 1.67
Stop Loss: 1.68
Take Profit: 1.63
Have a good trading day and let me know what you think.