EUR/NZD Short Starting to Run

in forex •  2 months ago 

EUR/NZD Key Points

  • Higher time frame, EUR/NZD resistance zone.
  • Short term support turned resistance to get short.
  • New lows being made as short plays out.

EUR/NZD Technical Analysis

Evening team,

I said this one would be a slow burner and that's exactly what it has been. With the EUR/NZD resistance zone in play, this was what I said yesterday just as we were entering the zone:

190731-eurnzd-d1.png

Price is only just heading into the zone now and we have to wait and see how price reacts to the zone. From here, we zoom into an intraday chart and wait for a short term area of support to be retested as resistance for an entry.

Keep an eye on this one, it has some serious potential.

"Serious potential" indeed. Take a look at how price reacted out of that resistance zone on the updated EUR/NZD daily chart:

190801-eurnzd-d1.png

Now as I said in the quoted extract above, I'm looking for an area of short term support to be retested as resistance so I can use the zone to get short.

Take a look at what we've got on the current EUR/NZD hourly chart below:

190801-eurnzd-h1.png

I've marked the candle that I'm using to show the short term support turned resistance in grey. You can see that price stalled there, went lower and then when the zone was retested, clearly held.

With price now just making new lows as I type, this looks a good trade.

Best of probabilities to you.

Dane.

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