TheTradingRoom

Potential Conter trend corrective underway in the EUR/NZD

Long
FX:EURNZD   Euro / New Zealand Dollar
Good afternoon folks, Happy Friday!

On our hunt for some potential ideas forming this morning, we came across an opportunity in the EUR/NZD.

At the moment price seems to have formed a nice higher low and has surged to the upside with a particular degree of momentum. Given that we have such a huge gap away from our 8EMA, I would expect the gap close to be well under way before long.

We did see something similar to this counter trend view earlier in the week before we saw another leg down but given where price is in the wider picture, having closed beneath major support, the likelyhood of a deeper corrective certainly seems to be on the cards.

Wait for a potential trigger via the breakout and retest of the 1.62400 zone for a potential window of opportunity to seek longs to approximately 1.63300-400.

Dont rush the process and trade the plan.

Have a lovely weekend!