On November 12th I discussed a potential short opportunity on EURNZD. Sellers were targeting 1.6570 after breaking below key support at 1.6800.
At the time, the euro cross was trading just above 1.6700. But instead of retesting old support as new resistance, EURNZD bears took the price straight to 1.6570.
Unless you sold as soon as I released that November 12th commentary, you most likely missed the move.
However, as is often the case, we may have a second opportunity.
Notice how EURNZD has recently rebounded from the 1.6570 area. Since then, buyers have managed to claw back 200 pips.
That means the market is now less than 100 pips away from new resistance near 1.6830.
That’s the area I’ll be watching next week. Bearish price action from the 1.6830 resistance area could trigger the next leg lower.
As long as 1.6830 holds as new resistance on a daily closing basis, the breakdown I mentioned on the 12th is in play.
Are you using the wrong charts? If the daily time frame doesn’t close at 5 pm EST, you aren’t using New York close charts which are essential for trading price action.
Key support comes in at 1.6570. A daily close below that would expose the September 2017 low at 1.6150.
That 1.6150 level, by the way, is the final target for this upward sloping flag.
At nearly 700 pips, the target offers plenty of room to run, but will also require immense patience if you intend to hold short for several weeks.
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Hi Mr Bennett
I’m spending This Pair , for swing position i see that is on Retracement on Daily (Corrective Wave) so the next Major support is on Fibo 078% @ level 1.52500
See you next month
Thanks
Thanks sir ! hi ! justin sir , why you don’t use ichimoku indicator? is ichimoku cloud good indicator ?
thanks for your reply.
I think it’s not an uptrend, it’s not a downtrend, it’s a range trend. And it started in the third and fourth weeks of this year.
Hi Justin,
I always read your mail/posts, in each of them you talk about daily close. What does it mean exactly, how many days does it have to be for one to consider trading basing on the daily close? Is it two days or more.
Thanks
Rose
Daily close is end of daily bar each day!
By a Daily close he means to wait for full day candle (24hrs) to close.
Hi Rose, it refers to the daily close at 5 pm EST. You can get access to the same charts here:
https://www.blueberrymarkets.com/lp/dailypriceaction
I have been receiving your emails for a while but never really followed your analysis – because i was following some other ones.
But since i started following your analysis a few weeks ago, it has been some on-point.
I can say, for me, your analysis has been the best so far – and your explanations, so easy to understand.
I can only imagine what i would gain when i eventually join the membership.
Thanks a lot Justin – please keep up the good work.
I meant your analysis has been so on-point.
You’re welcome. Thanks for the kind words and encouragement.
Thanks Justin
You’re welcome.
Nice work bro.Your analysis/comments helped me to improve my PA skill.
Cheers.