Monday, December 10, 2012 — EUR/NZD

by jennifer on December 10, 2012

Hello Yo’s!

I got a request on Twitter to look at EUR/NZD. It does look interesting so I thought I’d share a few charts with you.

Daily: 

1. Price is, for the third time, down around a low level. Twice before it immediately rejected the downward move, and price rose rapidly from here. It’s possible that will happen again.
2. However, if price does go below this well established low level, the  new low could be a couple hundred pips lower.

4 Hour:

1. Combo setup, and I likey likey!
2. The indicators are stacked. There is room to Combo Lines (200 pips!), and MACD and RSI are in line for the move.
3. I also like the 800 SMA in there. I highlighted previous times price ran into the 800 SMA to showcase how normally price swirls around that MA for awhile as opposed to running straight through it without looking back. I would expect current move to at least make it back to the 800.
4. I also put an arrow where the Combo Lines are crossing. Sometimes price races back to the lines over the course of the week before continuing on in it’s direction of choice.

PLAN: 

1. Even though this is not a pair I regularly trade, I do like the idea of a buy when MACD goes positive and RSI goes over 30. Stop out early if the market falls against us, with either RSI or MACD moving back over their signal levels.
2. I would even be in favor of getting a stop to break even for safety and holding for a higher profit target as it would appear this on setup has some space if price wants to go there.

Good luck. Enjoy the rest of your day!

Jennifer

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