Today EUR/NZD gapped down at the opening of the market, slightly below the previous daily close (HLOC – H1 timeframe), and immediately started to rise with a Bullish Counter-attack.
The macroeconomics data that hit the NZD was the Business Confidence Index, declined by 1.1 points in August.
Today’s reading of our Power Strength indicator was the following: NZD 100% SHORT, EUR 100% LONG…making EUR/NZD the most likely currency pair to move upward for the day.
We also had a condition of percentage confluence, according to the Net Change.
Price action converged on the bullish side since the early trading hours, as highlighted by the Market Pressure.
The Info Panel Market relayed a positive Volume Delta and the Algo Zones indicated an alignment of the RSI above the 50 level on every timeframe.
These elements supported and confirmed the buy entry suggested by the Target Geometry at 1.6509.
The currenmcy pair rallied 105 pips from the entry level, piercing target 8.
