EURNZD Touches Down On Weekly Support – Huge Mean Gap!

The NZD rally this week as caused most NZD pairs light up this week, including the EURNZD which is the chart I am eyeballing going into next week.

We’ve seen a very very large drop in this market, where the intense selling as created a massive hole between the actual bid price and the mean value.

Generally when you get extreme gaps like this, it’s like pulling back on a bow and arrow, when it lets go – the return move is just as violent, as the market does not like to sit around at this extreme prices at all.

So the mean gap is going to encourage buying.

But we’ve also got another technical reason here for bullish price action to kick in, and that’s the weekly support level.

These weekly levels are where you normally see the market bounce, and since we’ve already seen the seller dump the price here – we can only assume that they are going to be some what exhausted.

Price will take the path of least resistance, and right now that looks like it is to the upside.

We’ve already seen the bulls starting to enter the market off the weekly support. Going into next week, I am expecting a much more aggressive bullish response.