Short EURNZD – possible SHS-Formation
Trading idea: stop sell order at 1.5495, Risk-Reward = 5.0
SL@ 1.5545 (-40), TP@ 1.5270 (+225)
Not a classical Shoulder-Head-Shoulder formation (right shoulder too high, neckline not in a right angle), but still a valid setup from my point of view.
A move below 1.5500 should take price at least to 1.5420, which is a valid role reversal line and would have been my natural target point in normal times (one might close half position there).
However, lately this pair tends to huge swings, so there might be more pips to collect.
1. A big on 1h chart near 1.5420 area might be a good reason to close the trade
2. If price move up to 20EMA on 1h chart (current at 1.5543), one might short with SL at 1.5555
Disclaimer: There is a very high degree of risk involved in trading forex. I assume no responsibility or liability for any trading or investment results. My posted statements and charts may unintentionally include inaccuracies. All content posted is for educational purposes only and is not a financial advice. The presented set-ups are not solicitations of any order to buy or sell.