Technical Analysis: Potential Selling Opportunity on EURNZD

Technical Analysis: Potential Selling Opportunity on EURNZD

Dear fellow traders,

I would like to share a detailed analysis that has identified a potential selling opportunity on the EURNZD pair, based on careful technical analysis. Here are the details:

Overview:

Pair: EURNZD
Timeframe: H1 (1-hour chart)
Technical Context:
Following a sharp downward movement, EURNZD found support at a key area and established a lateral consolidation. Recently, we observed two false breakouts of this consolidation, which attempted to push higher but lacked strength, quickly reversing back to a selling bias, indicating a scenario known as a "Bull trap".

Indicators Used:

LTA Breakout: Price broke below an upward trend line (LTA) within the consolidation, confirming weakness among buyers and strength among sellers.
Price Patterns: The "Bull trap" pattern following the previous breakouts suggests a potential short-term reversal to the downside.
Profit Targets:

Target 1: 1.7875 - First significant support level.
Target 2: 1.7845 - Second relevant support level for a possible continuation of the downtrend.
Max Profit: 1.7790 - Key area where I expect the selling to reach its maximum potential.
Risk Management:
I am closely monitoring price action and will adjust the stop-loss as needed to protect potential profits and manage risk responsibly during the trade.

Conclusion:
Based on the technical analysis and identified price patterns, I am considering a selling position on EURNZD. Please note that this analysis is for educational purposes and does not constitute financial advice. I recommend conducting your own analysis before making trading decisions.

I am available for discussions and clarifications in the comments.

Wishing everyone success in their trading endeavors.

Best regards,

Italo Olini
Tribo de Traders