EURNZD Possible Bounce Higher
Updated
This pair has seen a very powerful move up recently after political developments in New Zealand left the NZ$$ in the doghouse, allowing the Euro to take control.
We're back in the support zone again, and the stochastic is now rising from being oversold. Moving average is still pointing up.
In terms of risk, the price has moved quite a bit lately, so how much further it has to go is debatable. The NZ$$ has fallen a lot since August, and may find some support. The Euro is also seems to be pointing lower, at least for now. Plus, we have what looks suspiciously like a head and shoulders pattern, possibly signalling a further move lower.
Therefore, I am trading this with a buy stop limit order. I've placed the entry price quite close to the current price action because the best I am hoping for is a continuation of the range. Any further away, and there probably isn't much point in doing this.
We're back in the support zone again, and the stochastic is now rising from being oversold. Moving average is still pointing up.
In terms of risk, the price has moved quite a bit lately, so how much further it has to go is debatable. The NZ$$ has fallen a lot since August, and may find some support. The Euro is also seems to be pointing lower, at least for now. Plus, we have what looks suspiciously like a head and shoulders pattern, possibly signalling a further move lower.
Therefore, I am trading this with a buy stop limit order. I've placed the entry price quite close to the current price action because the best I am hoping for is a continuation of the range. Any further away, and there probably isn't much point in doing this.
Note
Bank of England interest rate rise triggered my limit order and stopped me out. I re-entered the order with the same trigger and a new stop below the most recent swing low.Trade closed manually
With a strong NFP number expected tomorrow, I think we might see some additional Euro weakness. Also, I am trading the Dow Jones expecting a new all time high if the NFP does turn out to be strong, so I see little point in trading both the Dow and this.
EURNZD is currently going sideways, no doubt waiting for the NFP result. Will look next week at what happens (probably EURNZD will fall), and try again if possible.
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