FXDAH
Short

EURNZD Descending channel short

FX:EURNZD   Euro / New Zealand Dollar
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.

Comments

Hi there hope you are well, I was wondering if you could help me, I am looking for advice on whether or not to hold my sell trade over the weekend
Reply
FXDAH Joshuastley
@Joshuastley some people are happy leaving it over the weekend (I am) whilst others are not and will always close out their trades on Fridays. I guess the risk is anything happening news-wise concerning either of the pairs in the trade which will mean the market opens much higher/lower than at Friday close. To be conservative, I would suggest moving stop loss to entry if the trade is in profit, or half-closing the trade if you want, and if it is in a loss I would suggest moving stop loss tighter to prevent further losses. Hope this helps mate
Reply
@FXDAH, Nice one for that mate been trying to improve only risk management and understanding of longer term trades, really appreciate your response ill take your advice onboard and loving your feed mate cheers
Reply
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