On the weekly chart, EURNZD looks bearish with long upper tails in the last 2 candles. In a lower time frame, it is trapped in a pennant. With FOMC later today, I am expecting it to break out of this pennant. I am waiting the price to reach to the top of the pennant at around 1.571 today to take out the weaker shorts entered earlier today. This will give me an excellent entry to short. My stop loss would be at 1.579, above the last two spikes on the daily chart. My take profit level is previous low around 1.545-1.546.
Comment:
Now that H4 close has broken the pennant, I'm looking for a lower entry at 1.567.
Trade active:
Opened manually at 1.563.
Comment:
Added another 1/2 of my original position at 1.559.