EURNZD – Recent Upside a Corrective Bounce Only

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March offered a massive rally up north, with prices coming just shy of the big 2.000 figure on the 19th. Since then, prices retraced to 1.7840 and are currently on a corrective bounce.

The daily chart above shows a bull channel. The double bottoms suggest a temporary bottom is in place now, and the corrective bounce could record further gains towards the 1.8400 handle.

However, a break above the intermediate resistance drawn by the descending blue trendline is needed for that.

In the short-term, the descending red trendline offers a support structure in case prices turn bearish.

The 4-hour chart below mirrors the daily chart. It shows an initial break of the intermediate bearish trendline and a retest. The recent breakout structure could then increase momentum towards the intended target of 1.8400.

eurnzd

The overall picture suggests that once the 1.8400 handle test is completed, the upward correction could come to an end. In that case, a break to lower lows can be expected, below the bullish channel.

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