The EURNZD has formed a a two bar reversal from a double top on the daily price action chart. The recent trend has been higher but two bar reversals are reeversal signals and this has the potential to push price lower. If price can move lower the next support level comes in around the 1.6050 area where price has struggled at previous resistance in the past.
On the chart below this level is marked and we can see that price struggled to break higher before smashing through and this level may now look to now hold as new support. If price fails to move lower and continues on higher with the recent trend, any moves will have to break through the double top. Until this double top resistance area is broken the chances are that price may range and go into consolidation.
EURNZD DAILY CHART | 3 JUNE 2013
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