EURNZD PRICE ACTION TRADING CUP & HANDLE PATTERN

EURNZD has formed a C&H pattern on its daily chart.
the price is trading below the Breakout: 1.75486.
ST: 1.72720

targets
62%: 1.82894
79%: 1.84933
127%: 1.90766
162%: 1.94938

Comment:

William J. 0’Neil developed and popularized in the 1980s the
Cup and Handle pattern.

Cup and Handle patterns are continuation patterns, and they usually form in bullish trends.
They also form in all markets and in all time-frames.
The “Cup” formation is developed as consolidation phase during price rallies from the round bottom formation over multiple weeks to months. The “Handle” part forms due to a price correction after “Cup" formation and before a clear breakout to the upside.
Cup and Handle pattern structure show the momentum pause after reaching a new high in a U-Shape form, followed by another attempt to breakout. When this breakout from the rim of the cup fails it starts to fall back to build the 'Handle' structure. Usually, the handle structures are small, and the handle depth should not exceed more than 50% of cup depth.

Entrie
When the pattern breaks out above the rim of the cup, a long trade is entered above the high of the breakout bar.

Targets: 62-79%, 127-162% Cup height


Stop
A stop should be placed
below the middle of the
handle level.

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