EUR/NZD Closed the Week with a Pin Bar and a Bullish Divergence

The pin bar and the divergence on the RSI indicator are very obvious on the weekly time frame. That means that next week we can expect a move to the upside.

Since the figure we can see on the screenshot is a flag with four clear points we can use to draw it (which is a necessary and acceptable condition to define this pattern) we could conclude that the move to the upside will continue to the resistance trendline towards the 1.6140 level.

From that point there are two scenarios:

In the first scenario the pair will break above the trendline and it will reach the limit of that flag which is 180 pips from the breakout level to the upside.

In the second scenario the pair will drop and only then start rising again and break above the trendline.

Considering that before it started forming the flag the pair rose with 450 pips, I think that the second wave to the upside on the monthly time frame could rise with another 450 pips after the breakout.

EUR/NZD Is Forming a Triangle on the Daily and Weekly Time Frames, which Is a Signal for a Good Profit

I really love triangles, because they are patterns the limit of which is easy to figure out after a breakout.
One such triangle, which in my opinion is a good idea to observe, seems to be forming on the daily time frame of EUR/NZD. The same pattern is also visible on the weekly time frame.

Of course, before we can trade that triangle we will have to wait for a breakout in either direction, but that alone is not enough. Usually, when we have a triangle and a breakout, the pair retraces back to the breakout to test that level before continuing in the direction of the breakout and that is the best moment to open a new position.

If we watch the EUR/NZD pair and wait until this moment we will have the chance to trade at least 140 pips, i.e. the height of this triangle starting from the breakout level.