Looking at EURNZD for a short on a potential correction.
The pair have been trading strong to current supply zone.
Often after a strong impuls, a strong correction takes place.
But strong impulses can also hold momentum and continue.
So that is something to keep in mind and an eye on.
Overall the pair is pretty much trading at a relative premium level, but
definitely not at its highest premium.
The weekly closed as a massive doji and local the price seems to form a double top.
Monday and Tuesday there is quite some news, so I'll let that play out and see how price builds
its structure and maybe trade the price back for a retest of the 1.7940 range.
The pair have been trading strong to current supply zone.
Often after a strong impuls, a strong correction takes place.
But strong impulses can also hold momentum and continue.
So that is something to keep in mind and an eye on.
Overall the pair is pretty much trading at a relative premium level, but
definitely not at its highest premium.
The weekly closed as a massive doji and local the price seems to form a double top.
Monday and Tuesday there is quite some news, so I'll let that play out and see how price builds
its structure and maybe trade the price back for a retest of the 1.7940 range.
Note
Seen on the one hour, it's clear price is ranging in a channel. A favorable scenario would be a breakdown from current range and a test of the bottom base of the channel and then trade the breakout.
If price is going to retest the upper base of the channel again.
A favorable scenario would be a strong breakdown to the bottom again with no bounce or a weak bounce in the center. Otherwise it might indicate the momentum is still there and price might continues.
Note
Seen on the weekly it's clear price is moving up within this big rising wedge that dates back to early '22. There has been similar patterns, marked in the green blocks, where price has an impuls after a big correction, but instead the momentum continued. It often corrects again and ranges, before going higher. So this might add to the possibility of price retesting 1.7940 range, before potentially going to 1.9000 range as the overall trend might suggest.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.