The #EURNZD pair could be setting up for a trading opportunity in line with the weekly trend.
Watch the video to learn more…
The currency markets have been very volatile lately causing a lot of range bound movements. This has made trading difficult for trend traders who rely on the market moving in normal conditions.
The strength meter this week highlighted the potential for the New Zealand Dollar to reverse its weakness and get stronger against weaker currencies. The Euro has been one of those weaker currencies this week offering us short trading opportunities.
Looking at the weekly time frame we can identify that the price is in an upwards trend but in a retracement phase. When the weekly time frame is within this retracement phase we can look for opportunities to trade it back to a key support level. In this case the previous highs could be where the trend resumes offer short trading opportunities if the price is going to head there.
The 4hr time frame shows that the price has broken into new lows after consolidating for a period. This confirms the market is in the retracement phase and that we are more likely to trend lower. If the price reaches the minor supply zone we can look for bearish price action for short opportunities.
Did you see our GBPUSD analysis? You can watch it here.
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