On July 1 2021 EURNZD was showing several bearish patterns that was signalling the pair would move lower. The pair was stalling at key pattern SELL trigger levels that was signalling traders that sellers/bears were getting in the market.
The chart below shows a bearish pattern (blue) completing point D at the BC 0.50% Fib. retracement level. The BC 0.50% Fib. retracement level is the SELL trigger of the bearish pattern. Another bearish pattern also formed in this area. An AB=CD bearish pattern (brown) also completed the point D at the AB=CD 1.0% Fib. extension level. The AB=CD 1.0% Fib. extension level is the SELL trigger of the bearish pattern. Entered SELL trade at 1.7000 with Stop Loss at 1.7045 and was looking for a move lower targeting the AB 2.24% Fib. retracement level or the 1:2.5 RR target level.
EURNZD 1 Hour Chart July 1 2021
EURNZD 1 Hour Chart July 2 2021
EURNZD eventually moves lower and on July 2 2021 price extends below the AB 2.24% Fib. retracement level and hits the 1:3 RR target at 1.6865 from 1.7000 entry for +135 pips. If you followed me on social media @AidanFX you too could have caught the EURNZD move lower. We at EWF never say we are always right. No market service provider can forecast markets with 100% accuracy. The only thing we at EWF 100%, is that we are RIGHT more than we are WRONG.
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on social media for updates and questions> @AidanFX
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