Even though Euro prices seem to be rising, it’s in my opinion that those highs are perfect selling opportunities. Why? Well, first, we have to consider December 2017 price action. By close of the year, we had a complete double bar bear reversal pattern and thereafter, prices have been oscillating without clear gains in the last 3 months. I will take cue from that bear candlesticks and look for selling opportunities in lower time frames.
More often than not, the 4HR chart can be a timely place for entries and here despite being not perfect, the bearish engulfing candlestick we saw on March 29 can be indicative of bear presence. Then again stochastics are bearish yes but not perfect since they aren’t turning from deep the overbought territory. The only positive is that we might be in the early stages of a minor bear break out pattern.
This is my EURNZD trade plan:
Sell Stop: 1.6990
Stop Loss: 1.7100
Take Profit: 1.6730
Let me know what you think. Enjoy your day