Hey everyone!
We have a new trade for the challenge! In this case, I decided to also enter short in the EURNZD currency pair. While we have the AUDNZD trade running in profits, historically, the correlation between AUDNZD and EURNZD has been moderate (around 40% -50 %); therefore, we can also harvest some profits from this trade.
In the H4 chart, we see that the market held a bullish structure for a few months of 2024, breaking in early April. After that, the market tested a support area a few times and recently visited the resistance area in H1 (green zone).
In H1, we see a strong bearish rejection alongside a significant divergence between the price action and the stochastic oscillator, which signals a solid bearish presence in the market. Also, the price action suggests strong supply in the H1 resistance as the market reached the area with a relatively sizeable bullish strength and then immediately rejected the area without showing any significant demand opposition.
When zooming in to the M30 timeframe, we see that the market rejected the H1 resistance by showing a close below the low of the candle that printed the recent high, after which we see another large bearish candle closing significantly below the resistance, which I took as the green light to execute this trade.
Regarding profit targets, I'm shooting for the H4 support area around the 1.7900 zone for the initial target, keeping a standard approach of leaving half of the trade running if we see a breakdown from the support area, which would imply a sizeable bearish potential.
Let me know what you think of this trade idea in the comments! Remember to like and follow to keep up to date with the challenge. 🚀
Until the next trade!:D
We have a new trade for the challenge! In this case, I decided to also enter short in the EURNZD currency pair. While we have the AUDNZD trade running in profits, historically, the correlation between AUDNZD and EURNZD has been moderate (around 40% -50 %); therefore, we can also harvest some profits from this trade.
In the H4 chart, we see that the market held a bullish structure for a few months of 2024, breaking in early April. After that, the market tested a support area a few times and recently visited the resistance area in H1 (green zone).
In H1, we see a strong bearish rejection alongside a significant divergence between the price action and the stochastic oscillator, which signals a solid bearish presence in the market. Also, the price action suggests strong supply in the H1 resistance as the market reached the area with a relatively sizeable bullish strength and then immediately rejected the area without showing any significant demand opposition.
When zooming in to the M30 timeframe, we see that the market rejected the H1 resistance by showing a close below the low of the candle that printed the recent high, after which we see another large bearish candle closing significantly below the resistance, which I took as the green light to execute this trade.
Regarding profit targets, I'm shooting for the H4 support area around the 1.7900 zone for the initial target, keeping a standard approach of leaving half of the trade running if we see a breakdown from the support area, which would imply a sizeable bearish potential.
Let me know what you think of this trade idea in the comments! Remember to like and follow to keep up to date with the challenge. 🚀
Until the next trade!:D