EUR/NZD Price Analysis: Bears seek the 38.2% Fib and will survey the landscape from there

• The price of EUR/ZAR is headed towards a key support area that could imply a shorting opportunity on a re-run to the upside.
• Bears will be looking for a discount from the current resistance for a swing trade towards the weekly downside structure.

The price of the cross has fallen towards a 38.2% Fibonacci of the weekly rise as bears stepped up in full force below the head and shoulders neckline on the daily chart.

Meanwhile, there is a shift in the positioning data that has favoured the kiwi, but bears will be hoping for a retracement back to test the daily resistance from daily support following a test of the 38.2% Fibonacci.

At that juncture, there are higher probabilities of a re-run to the downside and a possible break of support towards the weekly W-formation target.

Monthly resistance

The above chart illustrates the latest monthly resistance for which the eclipsed Doji candle acts as a resistance structure candle.

Weekly W-formation target

Daily head and shoulders define new resistance structure

The daily head and shoulders is now offering a resistance level for the bulls to target which could provide the bears with another crack at the whip for a longer-term seeing trading opportunity.