The EURNZD has formed a false break 2 bar reversal on the daily chart. This price action signal is large and a valid 2 bar reversal however if price is to move higher it is going to have to move through quite a strong resistance area.
In yesterdays blog we were looking for short entries on this pair if any price action opportunities presented. Price action never came and now price has closed back above the key resistance level that traders would have looked for price to reject with bearish price action.
This market now looks slightly indecisive with this large bullish signal on the daily chart but with resistance over head for any move that may occur in the coming days. If price can break higher and through the close resistance level it may then race quickly to the recent highs. If price rolls back over lower we may soon again be looking to get short at the key resistance levels.
EURNZD DAILY CHART | 11 JULY 2013
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