Here is the Top-Down Analysis of EURNZD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 44 - 26 Oct
M > Market is moving in a . Price tested monthly support, faced rejection and started upward move.
W > Price has faced rejection at support of channel and is
D > After rejection at weekly and creating price is moving in a . We saw an M formation and as expected price moved up to test its neck and complete the formation. Price faced rejection at channel support. We can expect price to continue with upward move till resistance of channel that can coincide with monthly .
As per EUR saw addition of few Long and more Short, reducing net positions further. EXY was weaker during the said week however it gained back its strength last week. Institutions, since last month, reducing their portfolio of Long and increasing Long positions, with total 32K Long positions closed and 13.5K short positions opened. NZD saw closure of both Long and Short positions further improving net positions, whereas ZXY was weak during the said week but it gained strength last week. ZXY has been gaining strength slowly since June 2020.
In short term we can expect price to rise up but a reversal can be expected from monthly .
4H > Price has faced rejection at support of channel and is now testing 4H . We can see an inverted H & S pattern under formation and price should continue moving upwards.
Pair Correlation > EURNZD has positive correlation with GBPNZD and negative correlation with NZDCHF , NZDCAD and NZDUSD .
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