Looking at the EURNZD daily timeframe, following up last week’s analysis. A bullish engulfing candle stick had just formed which completed a successful retest of the double bottom. However our bullish bias was invalidated as price rotated and broke out of the rising channel. The breakout was further confirmed.
Succeeding the breakout of the rising channel, we now have a bearish bias. There’s a chance we might see a pullback back to test the lower boundary of the channel. We monitor this pair to see whether we will see lower prices.
On this week’s timeframe of the Dollar Swiss, we’re going to follow up on the previous fortnight’s analysis. At the time, only the breakout and the inside bar had formed. We described the inside bar as a pullback that was incomplete or yet to be confirmed. During the past week, the pullback was complete by formation of the candle that closed below the breakout/the mother candle.
With completion of our retest, further price action will guide us to know whether bears will take prices further down possibly to our major level.