EUR/NZD - Short Opportunity (250pips Target)
EUR/NZD has been on a sustained bear trend for a month now.
Price has risen from the low formed on 22 July 2019, and is currently sitting at a point of strong resistance, with an added dose of bearish momentum divergence.
Assuming an entry at the current price (1.6790) I would consider the trade to have failed at 50-60 pips from here (1.6845ish).
I've designated two target levels because there are a group of cascading support zones below the current price. These zones were identified with the support & resistance algo that I've developed (see the Related Ideas), and have all been validated by recent price action. Given the strong bear trend, we should assume this is simply a pullback, and that price will form a new low below 1.6530. The second target level is at that price point, which would be a profit of 250 pips, for a risk of 50/60 pips (a 1:5 RR). The first target level would provide a profit of 130 pips (a 1:2 RR) The great thing about S/R trading is that it provides precise entry points, and you can (and should) exit the trade very quickly if price doesn't respect your S/R zone.
As always, employ your trade management and position sizing rules.
All the best,
DD
Price has risen from the low formed on 22 July 2019, and is currently sitting at a point of strong resistance, with an added dose of bearish momentum divergence.
Assuming an entry at the current price (1.6790) I would consider the trade to have failed at 50-60 pips from here (1.6845ish).
I've designated two target levels because there are a group of cascading support zones below the current price. These zones were identified with the support & resistance algo that I've developed (see the Related Ideas), and have all been validated by recent price action. Given the strong bear trend, we should assume this is simply a pullback, and that price will form a new low below 1.6530. The second target level is at that price point, which would be a profit of 250 pips, for a risk of 50/60 pips (a 1:5 RR). The first target level would provide a profit of 130 pips (a 1:2 RR) The great thing about S/R trading is that it provides precise entry points, and you can (and should) exit the trade very quickly if price doesn't respect your S/R zone.
As always, employ your trade management and position sizing rules.
All the best,
DD
Order cancelled:
Failed trade. NZD weakened.
