AUD,NZD/EUR crosses/EUR/USD/FXWW News/Technical Analysis/Trade Ideas

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.

  1. 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

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