This is quite tunneled vision as it will be like I’m recommending the same thing over and over again. But it would be worse and to some extend extremely unfair to ignore the positive correlation between the Euro NZD and AUD pair. As we saw yesterday, Euro appreciation is conditional and depends on if some key support and resistance lines are broken. In our analysis today, I will be preparing for some Euro gaining but first we prepare for the opposite scenario: that of Euro dipping below the support trend line in the daily chart. First, we must notice that in Q3, buyers were strong and continued pumping prices higher. Even though there is no stochastic buy signal in the daily chart, at least we have stochastics around the buy zone and besides, today’s candlestick didn’t follow yesterday’s script and ended up bearish.
In our entry chart, we have these clear stochastics buy signal and a couple of higher highs following a period of brief consolidation. Like yesterday, I recommend buyers to enter now but if you are conservative, a break and close above the minor resistance trend line would mean we shift of trend.
This is how we going to trade this pair:
Stop Loss: 1.5280-below this week’s low
Take Profit: 1.58-This month’s highs
Have a good trading day guys, nothing is coded on a rock we can make good use of your recommendation.