Very similar scenario to the EURNZD trade posted earlier.
After a very strong bull run the pair entered overbought territory and we see a bit of a spinning top what it is usually a sign of weakness. It has a lot of room to run and very little support on its way what makes the R:R on this trade exceptional.
How do I play it?
There are 2 entry points :
- We can wait for that thick black line to be broken as it acted as some weakish support in the past. Less aggressive approach.
- We could enter on that doji 4H candle marked with an arrow and looking at the 1H estructure. More aggressive approach.
It is also interesting to see that the price is now under the 4H 50MA and as long as it remains under it we are good to sell this pair.
Trade safe!
After a very strong bull run the pair entered overbought territory and we see a bit of a spinning top what it is usually a sign of weakness. It has a lot of room to run and very little support on its way what makes the R:R on this trade exceptional.
How do I play it?
- We can wait for that thick black line to be broken as it acted as some weakish support in the past. Less aggressive approach.
- We could enter on that doji 4H candle marked with an arrow and looking at the 1H estructure. More aggressive approach.
It is also interesting to see that the price is now under the 4H 50MA and as long as it remains under it we are good to sell this pair.
Trade safe!
