Good morning team,
We are taking another look at the EURNZD as the technical analysis is still valid from last week. It was the correct decision to close out with a small loss initially as the pair would have hit our SL. However we are now looking to reposition as it appears as though another breakout is on the cards.
EURNZD – Daily Charts
The EURNZD is still trading inside the falling wedge formation suggesting price action will breakout out in the near future. We are still expecting a move towards the 1.7060 resistance zone.
EURNZD – 1 Hour Charts
We can see a potential inverted head and shoulders formation in play, and we are now looking to position on the right shoulder ready for a breakout to the upside. Stops will need to be placed below the most recent swing low at 1.6710.
Trade Setup: BUY Market execution, current price 1.6790, stop loss 1.6700 and take profit target 1.7000.
Stop loss: 90 pips
Take profit: 210 pips