Nick Nasad
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EUR/NZD Follow-Up: Initial Head and Shoulders Break Shows Some Promise

On Wednesday, I wrote about the EUR/NZD and the first break of the neckline of a double top pattern.

  • Wanted to follow up here to show the fact that we did have some follow-through with price falling down to 1.4260.
  • We also managed to push below the 55 daily ema. Let's see if it can now turn around act as resistance.
  • The last 3 daily candles give me an indication that the 1.4450 resistance is now a solid level, and the technical bias in this pair has turned more bearish.
  • The targets ahead are a 1.4175 pivot, the upward sloping medium term trendline (in black) and then the 1.39 pivot. 
  • Therefore, the trading plan I may consider is to look for opportunities to short this pair (pretty much fade rallies) as long as price stays below 1.4450.

Wednesday's (09/04) Chart:

- Nick