YoungFxWolf
Long

EURNZD Falling Wedge , Break Out and Double Bottoms

FX:EURNZD   Euro Fx/New Zealand Dollar
Strong Support Line creating a Falling Wedge along with Double Bottom trend reversal indication.

There is a strong support line formed which market has failed to cross around 1.62077 and which also has been tested again before market close and has shown no indications of trend continuation on the downside.
Also,there is a strong indication of trend reversal based on double bottom phenomenon as shown in the chart.

Target around 1.63512 on channels upper level to test resistance of the bearish channel .

Stop under the support line around 1.61817 although, lower than 1.61560 would be wise if you want to take a riskier trade since price spiked to that point earlier.

Should price go above the first target , breaking the bearish channel , I plan to trail my stops slightly lower than the previous target and look for a 0.236 or ambitiously 0.382 fib retracement of the downtrend.

Should price go below stop and I get kicked off the position I would be looking at price action within the bearish channel , in interest to short.

Please be aware that this post serves no purpose other than to share an idea , showing my prespective on this particular currency pair and to receieve any constructive criticism with reasonable arguments.

Trade wisely,
Platon.

Trade closed: target reached: First Target reached
Thank you for your answers and insight , they are always welcome here!
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I trade this trend consistently when the majors are not moving or showing clear direction it is extremely volatile e even in the most gentle scenarios. GBPNZD is like the same chart and it too has monthly supports to lean on and NZDUSD chart shows bears gaining momentum. Initial price action would demand a short position. However, long-term this pair looks to be prepping for a reversal that will last months. I will post my comments.
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I was looking at your EURNZD chart and the only thing that will drive that price to another heavy support at 1.58 is positive NZD data and an overall pause in rate cut. That trend looks prime for reversal due to the RBZD comments about their currency rate. bearish channel reversal entry point is at 1.663 our so .... Great chart keep it up man!
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