EURNZD at Key Decision Zone | Breakout or Breakdown?

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๐Ÿ“Š Pair: EURNZD
๐Ÿ•’ Timeframe: Likely H1 or H4
๐Ÿ“… Date: May 18, 2025

๐Ÿ” Technical Analysis
๐Ÿ” Key Zones
๐Ÿ”ด Resistance-Turned-Support (RTS):
1.8975 โ€“ 1.8990
This area was previously a resistance level that price broke above, and is now acting as a critical support zone (flip zone). Price is currently retesting this area.

๐ŸŽฏ Target Zone (Resistance):
1.9085 โ€“ 1.9110
This is the next projected bullish target if price successfully rebounds from current support.

๐Ÿ›‘ Major Support Zone:
1.8840 โ€“ 1.8860
Strong buying interest was seen here previously, acting as a safety net in case of bearish rejection from the current level.

๐Ÿ”„ EMA Confluence
๐Ÿ“˜ EMA 200 (Blue): 1.8975

๐Ÿ“• EMA 50 (Red): 1.8981
Price is hovering around the EMAs, indicating a moment of decision. A decisive move above these EMAs could trigger bullish momentum. ๐Ÿ“ˆ

๐Ÿ”ฎ Scenario Outlook
๐ŸŸข Bullish Scenario (Preferred Setup)
โœ… Confirmation above 1.8990
โžก๏ธ Retest and continuation could push price toward the 1.9100 target zone.
๐Ÿ”ผ Momentum supported by prior breakout and higher lows.

๐Ÿ“Œ Entry Idea: Above 1.8995
๐ŸŽฏ Target: 1.9100
๐Ÿ›ก๏ธ Stop: Below 1.8950

๐Ÿ”ด Bearish Scenario
โŒ If price fails to hold the 1.8970โ€“1.8990 zone, a breakdown could follow.
โฌ‡๏ธ Likely move toward 1.8850 support zone.
๐Ÿšจ Watch for bearish engulfing or rejection candles near resistance.

๐Ÿง  Summary
Price is at a key decision point.

โœ… Bullish bias is slightly stronger due to market structure (higher highs & higher lows).

โš ๏ธ But a clean break below support would shift focus to the downside.

๐Ÿ“ˆ Strategy: Wait for confirmation โš–๏ธ

Bullish: Break + retest of 1.8990

Bearish: Breakdown below 1.8950 and close under EMAs

Penafian

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