On the daily we can see that EURNZD
is trading within a descending channel
back down to pre-pandemic levels and the 200EMA. We have reached the apex of this channel which makes for a great trade set-up as it gives us a 3:1 risk reward which is something I will take every single day of the week. We have created a systematic sequence of lower lows and lower highs which further confirms this and I believe the formation of the next lower low is imminent hence the TP being at the bottom of this descending channel
. Tomorrow is also Friday whereby lots of traders may take their profits from the bullish
week this pair has seen which should get this trade off to a profitable start.
NZD had a poor week in terms of fundamentals here but expecting a recovery/retracement to get back in the game, especially as their lockdown as eased but I always trade technicals over fundamentals so still like the look of this trade.
Good luck traders.