Wednesday 11th December
Good afternoon Forex Kings,
Well done to those holding the EURNZD position, picking tops and bottoms can be a risky job, however using wider stops and correct risk management can minimise those risks.
We have now had a bullish reversal on the EURNZD and we are now sitting in a profit. The current structure appears to be creating an inverted head and shoulders formation. If this inverted head and shoulders formation plays out, we will look to enter a second BUY position on the right shoulder.
EURNZD – 4 Hour Charts
There are two scenarios here, 1: the market breaks the resistance level invalidating the head and shoulders, therefore we will hold our BUY position.
Scenario number 2, we get a pull back towards the shoulder line where will will add an extra position into our trade set up.
If we do get a pull back our trade set up will be to buy on the right shoulder line at 1.6900.
Trade Set Up: BUY LIMIT – Entry price at 1.6900, stop loss set at 1.6850, and take profit set at 1.7150.