Eurnzd Conclusion

Our trading idea on the eurnzd has since concluded. Our analysis was largely accurate and produced a good trade for this week. A position with a risk of around 20pips currently sitting at 92 that is still alive with potential to move further.

Why did we expect the upper trend line + fib zone to be a good area to expect a lower high? The recent lower-low wave before the large news related rally began the start of the structure. The volatility with which we retested the highs and rejected signals price is now more bearish than previously. After the bearish wave produced from these highs we then expect logically that if price is growing in bearishness it should on this wave finally produce its first lower-high. And where is a likely place for that to develop? Well what s/r do we have this this area? The trend-line and the fib zone. The technicals are important but the market itself interpreted through the most recent series of highs and lows needs to also be suggesting it will do what the technicals will then support it to do.

The lower trend line around 1.8350 up to the daily close lows at 1.8375 provide a decent resistance area we can expect to look for another short on this pair.

Good Trading.