Euro and the Kiwi

Good Morning Dynamic Traders,

Hope you all have had a great trading week and managed to make some nice profits.

Today I thought we could look at the EURNZD for a change.
In the day chart below you can see that price has been in a downtrend for quite a while now, so obviously short positions are favourable. If you are thinking of entering a short position, now is not really the best time. Can you see why?













The answer is because of the RN number that price has just reached. However if you are currently in a short trade, fear not. You should have been expecting a resistance area at this point, and remember the trend is your friend.

For those of you who are keen to enter a trade, patients will be important to make sure that you maximise you profits by not entering too early. You will see in the chart above that I have also highlighted some MACD convergence. This coupled with the RN means that price might struggle at this point before it continues its downward descent. To help you maximise your profits it might be a good idea to wait for a BOB.

What do you think? Always remember to carry out your own analysis.

Now that the week has finished, it would be a good time to reflect on the trades that you have performed this week, and to see if there is anything you can learn from what you have done right and potentially done wrong. While doing this it is very important to remember that the market is always right?

Hope you have a great weekend

Carpe Diem

Richard Monnery