EUR/NZD Down 38 Pips On 4 Hour Chart, is Inching Close to 20 and 200 Day Averages; Doji and Pin Bar Patterns Appearing on Chart

EUR/NZD 4 Hour Price Update

Updated June 22, 2020 01:10 PM GMT (09:10 AM EST)

EUR/NZD is down 38 pips (0.22%) since the previous 4 hours (opening the current 4 hour candle near 1.7353), marking the 3rd candle in a row it has gone down. Out of the 37 instruments in the Forex asset class, EUR/NZD ended up ranking 35th for the four-hour candle in terms of price change.

EUR/NZD End of Day Recap

Updated 00:30 GMT (04:30 EST)

EUR/NZD entered today at 1.74299, down 9 pips (0.05%) from the day prior. Compared to its peers in the Forex, EUR/NZD gave its buyers a return that ranked 35th in terms of percentage change since the day prior. Below is a price chart of EUR/NZD.

EUR/NZD Technical Analysis

Coming into today EUR/NZD is now close to its 20, 50 and 200 day moving averages, which may act as price barrier for the asset. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 200 day average, which is 28.6 pips away. It should be noted, though, the 200 day simple moving average turned upwards, which may be a bullish sign. Volatility for EUR/NZD has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving down. For additional context, note that price has gone down 8 out of the past 14 days. And for candlestick traders, a special treat: there are doji and pin bar patterns showing up on the charts as well. Rejoice!

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURNZD, with 15 buy signals on our radar and 6 sell signals. This imputes a buy/sell ratio of 2.5, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Reversal at the downward trendline on the 4H and the pair has formed a symmetrical triangle….I expect the price to trade within this triangle and then hitting the first take profit before proceeding to take profit two to potentially form a double bottom….Risk-Reward Ratio: 1:4.52SL: 1.75785 ( -69.4 pip risk)TP1: 1.73662TP2: 1.71955