EUR/NZD, after being bearish on the daily chart for several days, produced a bearish engulfing candle yesterday. The H4 chart shows that the price has been in consolidation. If consolidation support produces a bullish reversal candle, the buyers may go long above today’s highest high and push the price towards the North further.
Chart 1 EUR/NZD H4 Chart
The chart shows that the price made a bullish move and had a rejection around 1.74460. The price had another rejection today and produced a bearish engulfing candle. As of writing, the pair is trading around the level of 1.73420. The level has already produced a Pinbar. A Pinbar is considered as a bullish reversal candle. Thus, the buyers may go long above the level of 1.74460, which may push the price towards the North further.
Trade Summary:
Entry: Buy above 1.74460
Stop Loss: Below 1.73420
Take Profit 1: 1.75100
Take Profit 2: 1.75450
Take Profit 3: 1.756100