EURNZD breaking out of bullish descending wedge
EURNZD has broken out of its descending wedge this week...
Easiest way to play this is to let price bounce off the 200/250 ema and 12/30/16 (thin green line) to then pullback to the top of the wedge where the 50/60 ema awaits. Fibs should end up being right in that same area.
If this plays out we would also begin the formation of a head and shoulder pattern. Ideally we penetrate that resistance area with a higher high forming a neckline and then the retest would form the right shoulder. That's about as much confluence as one can get on a trade like this...
Ideal target would be the 12/02/15 major low (thick green line).
Easiest way to play this is to let price bounce off the 200/250 ema and 12/30/16 (thin green line) to then pullback to the top of the wedge where the 50/60 ema awaits. Fibs should end up being right in that same area.
If this plays out we would also begin the formation of a head and shoulder pattern. Ideally we penetrate that resistance area with a higher high forming a neckline and then the retest would form the right shoulder. That's about as much confluence as one can get on a trade like this...
Ideal target would be the 12/02/15 major low (thick green line).