Hi guys, here you can see the 4hr chart on EURNZD, i'm about to short this market and i'll briefly explain you why: firstly, the black line stands for a daily & weekly level of structure, that acted as support in the past, secondly, the RSI is overbought in this timeframe and it's showing some divergence on the daily chart. In addition to that, there's an AB=CD Pattern (with 1,618 extension) that's already completed (however in this large timeframe we can have some buffering before reversing). The last but not least signal comes from the chart itself, in the form of an engulfing candle (highlighted with the red arrow). As you see, there are multiple reasons that make me think it's an interesting opportunity. But i want to get a better RR ratio so i'm waiting to see a pullback in order to get my entry. Stops above 1,62. Targets with structure.
If you want to ask questions or share your view, feel free to comment below. Otherwise, see you in the next chart!
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If you want to play it conservatively, wait for this: