Good afternoon guys,
This week has started with a risk on mode meaning investors are more confident in the market sentiment.
Economies are coming back online and restrictions are being lifted in NZ and Australia supporting our local currencies.
Global equities pushed higher throughout yesterday and we may see another leg higher tonight which may also result in a stronger NZD and AUD.
The only issue I see which may impact our position is negative news regarding the trade war between Australia, China and the US. Therefore we are going to manage risk on this position. We will move our SL to open price once the market breaks 1.7960.
EURNZD – 4 Hour Charts
The EURNZD has been rejected from the key resistance zone at 1.8250. There has been a break and a retest of the key trend line down on the 1 hour time frame. The formation also looks like a head and shoulders set up.
Our initial target is going to be any 1.7875.
Trade Setup: SELL Market order, current rate 1.8035, stop loss set at 1.8130 and take profit 1.7875.
Stop loss: 95 pips
Take profit: 160 pips