Today, we’ll be looking at the Euro versus the New Zealand dollar for a potential move to the upside into and possibly through the monthly key of 1.82000.
Plotting the fib on the 4 hour time frame we can see that there was a wick into the 78.6 and a reversal off of the 61.8 followed by a very discreet higher high.
Dropping down to the 1 hour time frame, it’s clear that a higher high was formed. Now, plotting the fib to look for the potential higher low we can see that the 61.8 lines up nicely with the ascending trend line. To add another confluence, take a look at the highlighted region where we could have a potential inverse head and shoulder form if the lower high is created in the 61.8 region.
With today marking the seventh and last scheduled round of Brexit negotiations, it’s accepted by both parties that a deal will not be reached as soon as today with issues such as fishing rights still left to be agreed upon. The UK has ruled out extending the deadline until December 2020 with the hopes of an agreement being reached in September when talks are set to resume. Be on the look out for any significant updates regarding these negotiations later today.
Remember to wait for candlestick confirmation and always practice the correct management when executing trades.