EURNZD has been heading towards the North on the H4 chart. The price had a long consolidation first and then headed towards the North after making a Double Bottom. Today’s two H4 candles came out as corrective candles. Both of them are held by a significant level of Support though. This means if we get an H4 Bullish Engulfing Candle right from that Support level and afterwards an H1 breakout at last day’s higher high, then the price would continue to head towards the North again. Let us have a look at the H4 EURNZD chart.
EURNZD Price Action Analysis – 27th August 2018
The level of 1.73570 is the level of Support here. If this level produces an H4 Bullish Engulfing Candle and we get an H1 breakout at 1.74220, then the price would go towards the level of 1.75200 without having that many pauses. Let us have a look at the summary of the trade…
- Buy Stop Order: 1.74220
- Stop Loss: 1.73570
- Take Profit: 1.75200
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
The distance between the Support and breakout level is quite big. Moreover, there is no big news event today. Thus, the breakout is less likely to take place. However, if it does happen, then it would be an excellent entry. The main reason is there is no High impact news event in the next 24 hours on any of this currency. Let us now patiently wait and see whether the breakout takes place or not. At the end of the day, this is only we could do as a Forex trader before going into action.
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