Eurnzdforecast
EURNZDThe market has formed a rather strong support and resistance along this channel. Since it is a channel, we have no clue where it could break and take direction to. I have spotted a pin bar candle stick formed up right on the resistance, this is a good sign to expect the reversal of the trend from bulls to bears. On smaller time frames I have yet another conviction on this analysis, hence the confidence builds up.
EURNZD Sell SetupEUR/NZD testing the downtrend line and seems like the upside is limited and a possible correction is setting up. Short term momentum indicators support the view as well. If it forms a linear compression here, i'd recommend to look for sell setups for a target to 1.7100 or so.
Happy Trading.
EURNZD Long Trade EntryEURNZD has formed an impulse leg A and we are currently in the B correction which shows 3 waves at this stage. I expect a move back down to the low at 1.6715 and then a move to break out of the correction. It is possible that the correction will be a 5 wave structure but either way suggests a break to the upside. I have entered a short position down to the low where I will take profit and then enter the long position.
TP 1: 1.6800
TP 2: 1.6900
EURNZD on major support, prepare for a bounceEURNZD is in major fractal support, strong possibility of a bounce occurring.
Buy above 1.6818. Stop loss at 1.6716. Take profit at 1.7094.
Reason for the trading strategy (technically):
Price is testing and has bounced off major support at 1.6818 (Fibonacci retracement, horizontal swiung low support, ascending support, bullish harmonic formation) and a strong bounce could occur at this level to push price all the way up to 1.7094 resistance (Fibonacci extension, horizontal swing high resistance). We do have to be wary of our intermediate resistance at 1.6973 (Fibonacci retracement, horizontal pullback resistance).
Stochastic (89,5,3) is seeing strong support above 1.1% where a corresponding bounce could occur.