Trade what we see:
EURNZD has a lovely support trendline which tracks back on the daily chart to January 2018.
This trend line has now been broken and we are below the 50% retracement level. This is the second re-test of the broken trendline and we can see a lot buyers and sellers getting trapped.
I am cautiously entering this short but my two main concerns are: Italy and bigger pull back over such a bearish run.
I've placed my stop above the next fib level which should act as some protection.
EURNZD has a lovely support trendline which tracks back on the daily chart to January 2018.
This trend line has now been broken and we are below the 50% retracement level. This is the second re-test of the broken trendline and we can see a lot buyers and sellers getting trapped.
I am cautiously entering this short but my two main concerns are: Italy and bigger pull back over such a bearish run.
I've placed my stop above the next fib level which should act as some protection.