Some very concerning images coming from the US over the past number of nights as riots and protests escalate against police and the national guard.
The USD has faced more selling pressure this morning during the market open and commodity related currencies have dominated the market (AUD, NZD and CAD).
I am going to do a top down analysis on the EURNZD which has created a number of reversal candle patterns.
EURNZD – Monthly Time Frame
The Doji candle can indicate reversals in the market when found on key support or resistance levels.
The monthly close for May has created a Doji on the support zone.
EURNZD – Weekly Charts
There has also been a similar Doji candle for last weeks close at a key support zone.
EURNZD – 4 Hour Time Frame
The market price has now retested previous support and has potentially set up an inverted head and shoulders formation.
Our first target is going to be around the 1.8000 level, however if we see a break above that there could be room to move towards 1.8100.
Trade setup: BUY Market Execution (current price 1.7845), stop loss set at 1.7800 and take profit 1.8000
Stop loss: 45 pips
Take profit: 155 pips