EURNZD had a huge bearish rally and the price is retracing back to resistance. As a bear on this pair, I’d like to look for bearish setup to go short again.
ps: Nice carry trade setup which earns interest aside from pips
EURNZD Daily/4HR (Analysis)
Price is approaching a strong level of resistance. Whenever price approaches this level of resistance in the past, it either reversed sharply or required a strong price action to pierce through (arrows on the chart). The retracement (rising wedge) is extremely weak relative to its bearish rally. I'd drop into smaller TF and look for sign of reversal for another sell again.
EURNZD 1HR (1st Entry Suggestion)
Look for price to bounce from hourly support and create double top / lower high. If the price action show signs of struggle at the resistance level again, I'd put a market sell order with stop above recent high.
EURNZD 1HR (2nd Entry Suggestion)
Another possible sell scenario would be the break of hourly support. I'd wait for a retest of that support / resistance level with a limit order and stop above the recent high.
EURNZD 4HR (Profit Target)
This is a swing trade setup for the week which is also a perfect carry trade. I'd be looking for a another bearish sell similar to the previous rally (highlighted in RED). If price reverses at 38.2% Fib Level, the projected target would be 161.8% @ 1.46936. If price reverses at 50% or 61.8% Fib level, the projected target would be 138.2% @ 1.48497.