Looking at a great short setup on Euro versus New Zealand Dollar on the recent move higher coming up against resistance dating back to early January at the same time as volumes are dying out- suggesting this rally up to the resistance level is running out of power to break any further higher.
This coupled with multiple indicators showing overbought levels presents a great opportunity to place a high risk reward trade.
Our chart on trading view shows the resistance level dating back to January, the RSI at overbought levels and stochastics at extreme levels near to 90. We are looking for a pullback to 1.68 area before a period of trending sideways then further weakness down to 1.67.
Good luck trading
from the Team at forexTrdr
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Trade closed at stop loss on poor Australian inflation data leading to a spike lower in NZD. We reopened the short yesterday and have so far recovered half of our loss with trade still running.