FX.co ★ EUR/NZD Ichimoku technical analysis for November 29, 2011

H4

As expected the EUR/NZD declined to the support level 1.7600 formed by the lower limit of the Ichimoku Cloud in the 4-hour timeframe. A rebound to the upside followed and the market started consolidating on the current levels.
However the short-term negative sentiment remains as the Tenkan-sen and the Kijun-sen (3, 4) are still holding the Dead cross (5). Therefore the Senkou Span B is very likely to be broken down. In this case the market might fall down to the next support at 1.7450.
Further downfall can only be prevented by the Senkou Span B being in the oversold zone. Therefore even if the price breaks below the Ichimoku Cloud, in the nearest time a consolidation under the Senkou Span B might start.

H1

In a 1-hour timeframe the downside trend still remains both in short and in long term.
The Ichimoku Cloud has a downside character supported by the descending Senkou Span A (1), and the Tenkan-sen and the Kijun-sen are keeping the Dead cross (5).
Therefore in the nearest time we should probably expect further downtrend if the price manages to fixate above the Rotation line (3) being broken down at the moment. Morning highs are likely to be refreshed.