New Zealand Dollar has been one of the strongest pairs of the Forex market recently.
As you can see on the chart euro has been under performing NZD since late March.
Back in March it made a descending triangle top and broke it to the down side.
Since then it has been trading in a trading range between 1.825 ish which was the previous support of the topping formation and the support of the new range at 1.76 ish which bounced the price few times.
However it looks like it has made a continuation head and shoulders inside the range ( yes they can be continuation patterns as well :) ) and completed the formation by a break below its support few days ago. Target of the H&SH is around 1.7 .
A pull back to the previous support zone should be a good entry for a short trade. Because the zone should act as resistant now.
The first support zone below the price is around 1.715.
This trade idea has 2.5 risk to reward ratio.
As you can see on the chart euro has been under performing NZD since late March.
Back in March it made a descending triangle top and broke it to the down side.
Since then it has been trading in a trading range between 1.825 ish which was the previous support of the topping formation and the support of the new range at 1.76 ish which bounced the price few times.
However it looks like it has made a continuation head and shoulders inside the range ( yes they can be continuation patterns as well :) ) and completed the formation by a break below its support few days ago. Target of the H&SH is around 1.7 .
A pull back to the previous support zone should be a good entry for a short trade. Because the zone should act as resistant now.
The first support zone below the price is around 1.715.
This trade idea has 2.5 risk to reward ratio.
Comment:
Comment:
This hammer candlestick with followthrough under the resistance was an excellent entry for this trade.
There is also a continuation divergence ( hidden bearish) between this swing and the previous small swing at 1.756.
There is also a continuation divergence ( hidden bearish) between this swing and the previous small swing at 1.756.
Comment:
Comment:
good follow-through so far.
Comment:
Comment:
It's about to hit the first profit target. I'm going to take some profit off there and leave the rest of the position to reach the full measured move of the H&S with a trailing stop.
Comment:
Comment:
Bounced from the support zone, still nothing serious it will probably end up being a lower high.
Trade closed: target reached
Comment:
+2R