Please excuse my poor drawings - it ain't easy !
EURNZD -0.40% has displayed some textbook trading opportunities using simple trendlines .
From 1.6580 we had a fantastic bullish run, with buyers entering the market on the trendline .
The market stalled at 1.7369 and we formed a descending wedge - again buyers and sellers used the trendlines to execute their positions.
As soon as the wedge was broken, we saw a 600 pip move.
This bullish run ended with a break to the downside and a re-test. The sellers are in control now.
I am not entering any positions on this now, as the initial trade setup has passed (don't chase trades!).
I will wait to see what structure forms, and take a view from there.
EURNZD -0.40% has displayed some textbook trading opportunities using simple trendlines .
From 1.6580 we had a fantastic bullish run, with buyers entering the market on the trendline .
The market stalled at 1.7369 and we formed a descending wedge - again buyers and sellers used the trendlines to execute their positions.
As soon as the wedge was broken, we saw a 600 pip move.
This bullish run ended with a break to the downside and a re-test. The sellers are in control now.
I am not entering any positions on this now, as the initial trade setup has passed (don't chase trades!).
I will wait to see what structure forms, and take a view from there.