(Shorts) EURNZD Technical Analysis (May 18, 2018)Hello Traders,
Today we focus on Euro and for clarity, we are net bearish on the Euro going forward. Because of this predisposition, we are only looking for short positions and right now we have identified one in the daily chart. In breaking down this we shall consider price ranges and market participation. In this case, volumes play a critical role in our determination.
So, as we can see, prices are sliding down after rejection of higher highs on May 15. There, despite abnormal volumes, Euro bulls couldn’t push above April 26 highs of 1.730. What happened instead was a doji candlestick with a narrow trade range. The next day bears confirmed this sell move by closing lower with a bearish engulfing pattern.
Now, the best time for loading should could have been on May 17 but still shorting today could present with chance to turn in a profit albeit with more stops. Considering this set up, our ideal stops would be at April 25 highs of 1.730 and take profits at 1.6950 and 1.67.
This shall be our EURNZD trade plan for the next two weeks:
Sell: 1.708
Stops: 1.73
Take profit: 1.695, 1.67 and 1.65
Let me know what you think. Have a good time!!
