Good afternoon guys!
A great start to the week, we are starting to put together a nice run of trades.
Thanks for everyone commenting in the chat, the community is growing strong!!
Today we are looking at the EURNZD. The EUR has been one of the top performers over the last couple of weeks as weakness in the USD continues. The FED took an emergency 50 basis point rate cut last night to prop the markets up. The EUR benefits from USD weakness.
As of now, it appears as though the broad based sell off across equities has stabilised. Joe Biden has become the front runner in the US Super Tuesday Democratic voting. The market will take this news as positive as he not against the establishment like Bernie Saunders. As equities and commodities recover, we could see some strength return into the commodity related currencies like the AUD, NZD and possibly CAD (however the CAD is dependant on oil).
EURNZD – Weekly Charts
The weekly charts are creating a evening start candle formation. However, this is unconfirmed as it is only Tuesday. The pair are also at a key resistance zone, the aim of the game is to sell high and buy low.
EURNZD – Daily Charts
RSI is signalling extreme overbought conditions with a number of indecision candles forming at resistance.
Trade Setup 1: SELL (Market Price 1.7772), stop loss at 1.7872 and take profit at 1.7400.
Stop Loss: 100 PIPS
Take Profit: 372 PIPS
Trade Setup 2: SELL LIMIT 1.7900, stop loss 1.8020 and take profit 1.7400.
Stop Loss: 120 PIPS
Take Profit: 500 PIPS
The plan here is to enter a position now, if it hits a stop and continues higher we will enter again at 1.7900 which is the next key resistance zone