Is EURNZD ready for a continuation south? The evidence seems to stack up and we have a confluence of reasons supporting this. Of course markets could do anything – at any time...but as technical traders, we are assessing the following probabilities to see if we can play them in our favour.
On the weekly, we are half way down a long-term range. As for the daily, the horizontal level at 1.6200 marks a decent ceiling of resistance (one support), obstructing further Euro strength against the New Zealand Dollar. We have a price-action-based signal to sell in the form of a bearish pin bar reversal and “hidden” RSI continuation divergence. Furthermore, the level where price action is rejecting overlaps with the 0.382.
Many traders, risking 1-2% will simply place an order to sell (in anticipation of the continuation down) below the low of Thursday’s bearish pin bar reversal (plus spread and an additional pip) with a stoploss above the high (plus spread plus an additional pip). They will have a first target at the previous swing low (1.5783) at which point they will start to scale out of the position.
On the weekly, we are half way down a long-term range. As for the daily, the horizontal level at 1.6200 marks a decent ceiling of resistance (one support), obstructing further Euro strength against the New Zealand Dollar. We have a price-action-based signal to sell in the form of a bearish pin bar reversal and “hidden” RSI continuation divergence. Furthermore, the level where price action is rejecting overlaps with the 0.382.
Many traders, risking 1-2% will simply place an order to sell (in anticipation of the continuation down) below the low of Thursday’s bearish pin bar reversal (plus spread and an additional pip) with a stoploss above the high (plus spread plus an additional pip). They will have a first target at the previous swing low (1.5783) at which point they will start to scale out of the position.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.