Welcome to another blog by AspireFX. Looking at EURNZD, on the higher time frames we can see that there’s been a shift in momentum to the upside.
On the daily time frame we can see that although we’ve created a lower low between the 3-10 July, following that price action we printed a higher low shown by the upward pointing arrow, proving the shift in momentum to the upside. Plotting the fib, we can see that we had a reversal off of the 61.8 and could see this pair push to 1.77000.
On the 4 hour time frame above, we can see by looking at the highlighted region that an important point of resistance has now turned into support. Looking left at the dashed line that has been plotted we rejected the previous high of 1.76500.
On the hourly chart, we can look for potential intra-day trade setup because we’ve just had a break out above the previous resistance which could now turn into support for price to go higher. Plotting the Fib, the 61.8 lines up nicely with the psychological round number 1.76000. The last point of call for this setup would be the 78.6, if we see candle closures below that level it would invalidate this setup.
Remember to always wait for candle stick confirmation before executing any trades and always use the correct risk management.