EUR/NZD: Bearish trade idea
Thanks very much to Jack for pointing out the nice set-up here and this is a trade worth considering, more for the medium-term trader though rather than the intraday guys.
- The short-term chart (see chart) is showing a potential double-top at 1.7100 and resistance levels are now at 1.6950 (prior lows), 1.7000 (short-term bearish trend-line) and 1.7050 (hourly highs).
- The EZ situation is looking rocky again with spreads in the bond markets starting to widen again.
- The NZD has been dragged lower alongside the AUD but underlying real demand particularly from Chinese interests remains strong.
I don’t trade the NZD so I will not be trading this idea but it certainly does seem to have some merit. The downside targets are 1.6400 and possibly 1.5900 so the risk-reward outlook is excellent.
I got into EURAUD at 1.4357 last week, just put stops to BE, but there is a trend-line from last weeks two higher-lows (17th at 1.3824 and 19th at 1.4005) and if this doesn’t break that trendline within the next hour and it bounces, I will be closing this trade. Doesn’t help that the hour candle close from a couple hours ago looks bullish and is right at the highs of the past couple weeks before the breakout north. hell, going long and stop below. 1.4150 (just noticed a trendline from 6/11/2013 – 6/18/2013 tops of the triangle are providing support right now). Sorry for the long dialogue, typing as I just noticed this. CLosed short, long for 1.4250, 1.4325, 1.44
Txs Mike, nice trading. AUD/USD still struggling to break 9250 so your play makes sense
this is the most riskiest pair sean. trust me. i lost 500 dollars in a day on this. very risky. it can give 100 pip moves in minutes forget hours
You’re preaching to the converted Nachiket, the Kiwi has eaten my lunch on so many occasions I don’t touch it any more