The Euro performed well recently against the New Zealand, but it was mostly due to the weakness of the Kiwi Dollar. There is a false break noted on the hourly timeframe of the EURNZD pair, which is the first sell signal. Looking at the 4-hours chart, there was a bullish trend line, which is almost breached by sellers to clear the way for more downsides.
We should be looking for one final spike before, then a short-term correction in two waves to enter a sell trade.
Technical Analysis
H4 – Bullish trend line break, which suggests downside is likely in the short term.
H1 – False break signaling sellers are taking control.
Entry:
M15 – We can enter a sell trade for the EURNZD pair if it sets a bottom around 1.6360-80 and corrects higher in two waves as seen in the chart attached.
Target 1: 1.6300
Target 2: 1.6240
Stop Loss: Above the last high created before entering a sell trade.
Video Explanation:
Yours,
Vladimir
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