Most noticeably is the formation of an Inverse (or Inverted... take your pick) setup on the Dailies (1D, ) which is beginning to look quite ripe for the picking and providing a nice trend following, swing trade long opportunity for those who like that kind of stuff (and by that I mean anybody interested in making some profit from the markets :D)
Price action is currently testing a pretty significant level of resistance at previous structure highs, which pretty much lines up with the neckline of the aforementioned .
Having done our I (Identification) and P (Prediction), the only other question now is how do we get involved i.e. what is our D (Decision)?
Dropping down to the lower time frames (1H to be precise-see chart below), this pair has setup a very nice preparing us for a potential 2618 Entry opportunity to get involved.
IF price can retrace to the 61.8% or deeper of the confirmation leg (right leg of the ) to the most recent highs, THEN this could provide a very decent entry opportunity with a pretty nice Reward to Risk ratio.
Alternatively, IF price breaks and closes above the (which we just got on the 1H as I type this) and stages a further advance, THEN I'd be waiting for a retracement into resistance now turned support or possibly (ideally) lower into about the 1.7100 even handle for an opportunity to get involved.
It is worth noting that both the U.S (of A) and New Zealand will be releasing interest rate decisions later on today (18:00 GMT for the U.S and 20:00 GMT for New Zealand), both of which could significantly affect the outcome of this analysis. So I would be treading carefully or stay out until after the data releases.
As always, glad to share my observations of the market but the real work is yours to do. These are just my opinions and do not constitute any advice or recommendation to trade. If you do take a trade based on this analysis, please note you do so at your own risk so be sure to do your own analysis and confirm to yourself the trade meets YOUR rules and trading plan, that the risk is worth it to you and you have fully acknowledged and accepted the risk involved.
Good luck in your trades community. Wishing you all lots of success, consistency and bank :)
Entry is at the mid point between the 61.8% and 76.4% retracement at 1.7070 even
Stops have been adjusted to lower levels than an ATR based stop would generate, to give the trade room to breathe at 1.6987
Initial Targets are just below previous structure identified on the 1D at 17221
Risk: 83 pips
Reward: 151 pips
Let's see how this plays out
So it's some post trade analysis, back to the drawing board (as necessary) and then on to the next potential opportunity for moi.
Started out quite promising, scared us a little, showed a little moxie there for a spell but alas, the bears ruled the roost on this one (at least till my donation was made).
In any case, followed the plan and stuck to my rules, so chucking this one down to a good trade despite the lose unless my post trade analysis tells me different.
SO CALLING THIS ONE: GAVE IT A GOOD EFFORT BUT ALAS THE PATIENT DIDN'T MAKE IT. EUR/NZD 83 PIP LOSE. POSTMORTEM UNDERWAY!!!