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The EURNZD trades in an ascending regression channel as it maintains its push towards fresh highs. A rally towards the upper channel caused a rejection at 38.2% of the 1.99-1.7160 Fibonacci Retracement.
Prices are now hovering in the 1.80 psychological area, between Tenkan and Kijun.
The current momentum indicator shows an attempt to cross into lower values, forming a potential hidden bullish divergence. This could further support the upside bias which has been witnessed with previous bullish divergences.
A move to the downside eyes the first target being the lower regression channel. Should the lower channel break, then the next target could be the 23.6% Fibonacci retracement of the long-term bearish leg.
Reaching the lower channel will also mean that prices will attempt to re-enter the Ichimoku cloud, cementing the bearish move further.
In the short term, we are also witnessing a slight downturn towards the lower channel.
The momentum indicator also hints at a possible hidden bullis...
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