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FOREX Chart Of The Day: EURNZD Trade Update

Should you trade ranging markets?
 
In this video, we give an update to the EURNZD trade and why ranges may not be ideal for new traders.
This follows on the conversation from our ‘trend is your friend’ video.
 
Watch the video to learn more…

Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.

Practice trading with a demo account
In this video, we will go over the EUR/NZD daily trade that we talked about last week. The price has now moved into profit. I want to discuss this.

There are not many opportunities out there—a lot of range in markets, which isn’t great. We don’t want to be trading in those ranging markets. We want to be waiting for the nice trending opportunities.

That’s why we looked at EUR/NZD in the first place because it was forming this potential extension and we can clearly see, here, the price is in that overall downtrend. We moved to the downside, came back up, moved to the downside again, and then we’d find a bit of a shelf. The market would then break and come back up but it’s finding a bit of a shelf. That’s why I’m expecting the market to head towards these key swing lows, here. We’ve been in this trade for a little bit, so I thought I’d cover it.

I’m looking at the four-hour timeframe now. The price, again, is starting to trend back to the downside. I’m expecting a bit of a pullback on this if ever we hit this key level. Our entry seems to be quite a decent level, there, even on that previous high. At the moment, this is an area of interest. I always look at the previous swing lows as an area where I’d like to short the market. I expect the market to, maybe, at least come back up into this zone, to retest before continuing to the downside.

But, the reason why I like EUR/NZD short is that EUR/USD is quite bearish on the day. Kiwi as well, and it was quite bullish yesterday. I quite like the idea of the EUR/NZD going short. What we’ve seen, there, is that move to the downside already. We’re at this little area of support, little pocket, here, where the market has been in the past and bounced a couple of times from this area. We’re finding some support there. We want to see the market either pull back to here and break to the downside or continue to the downside, something like that.

But, essentially, all the other markets are range-bound at the moment. Nothing is going on, and when you trade in those range-bound markets, you’ve got to be careful about taking too many positions, or at least knowing that you’re in the market condition of a range.

What you want to do is to look at the market, see where the trend is, see where the overall bigger picture trend is and then look to trade off the back of that. Range-in markets can be very profitable, but they are a bit tricky to trade for new traders.

What you want to be focusing on are those trending markets. Where’s the trend? How do you take advantage of that? And if you haven’t seen “The trend is your friend” video, go watch that one. It was from a couple of weeks ago or last Monday, I should say, when we produced that video. Please have a look at that, it’s all about finding those trends, and then Monday’s gone talking about those trending patterns. We talked about things like the double-top, the change in cycle, things like this where we see the market come back up and then break to the downside, creating that change in trend, and then we look for that continuation. Check those videos out there. They’re quite good if you’re looking for trend trading situations.

But, essentially, we wanted to give you a quick update on EUR/NZD. It’s moving in the right direction. There could be some stumbling blocks in the way but look for those key resistance zones to come into play. If they do come into play, we can look for either small adding positions or see how the price reacts to these points.

EUR/NZD is looking good.

If you have anything that you want to see in these videos, any topics that you want me to cover in particular, please leave me a comment down below and I’ll get around to them at some point. But, I hope you’ve enjoyed the content, and If you did, please like and subscribe, and any feedback is always good. Thanks for watching. I’ll speak to you soon.

Try trading EUR/NZD at no-risk by using a demo account. Blueberry Markets offers a free demo account with up to $50,000 to practice trades with. Enjoy low spreads, quick executions, and personalised customer support when you trade with a live account–that’s the Blueberry Markets experience.


Blueberry Markets is not a financial adviser, and does not issue advice, recommendations, or opinion in relation to acquiring, holding or disposing of a margined transaction. We provide general advice only and accordingly you should consider how appropriate the advice (if any) is to your objectives, financial situation and needs before acting on the advice.