Short EURNZD Profits Heavy & Key Levels

On Sunday, we shared one of our euro-based trade ideas which was to short EURNZD. That was after our initial call for the EURUSD to stage a corrective advance into our "key selling zone" before meeting offers which would push prices lower into the 1.06 handle. That happened exactly as per planned.

While the general conditions of the markets have remain unfavorable for directional bets, all our calls and trade setups have worked out well so far. Our latest setup was to expect EURNZD to retrace into our "key selling zone" before bears take control of price action.

Late last week, we went short EURNZD at 1.6530. Subscribers to our Premium Signals Service would have gotten in the same trade as we did, and would be sitting on a handsome profit of about 170 pips by now.

 Since our call last week first on the EURUSD and then on EURNZD, we have made quite a few pips being short the euro against a complex of currencies. EURNZD rallied into our "key selling zone" in good order, before rolling over as expected.  The details of the setup of our EURNZD short trade. Price action to us is technically bearish short and long term while neutral to slightly bullish medium term. A strong daily close below our dynamic support will enhance our bearish bias.

Since our call last week first on the EURUSD and then on EURNZD, we have made quite a few pips being short the euro against a complex of currencies. EURNZD rallied into our "key selling zone" in good order, before rolling over as expected. The details of the setup of our EURNZD short trade. Price action to us is technically bearish short and long term while neutral to slightly bullish medium term. A strong daily close below our dynamic support will enhance our bearish bias.

The macro economic scene has somewhat toned down in volume after various data releases climaxing with yesterday's release of October FOMC minutes. We will publish another piece talking about those minutes in greater detail. 

Looking forward, our bias on EURNZD remain anchored on the same premise of a dovish ECB and a broad re-risking trade which should lift the New Zealand dollar in the medium to long term. EURNZD remains one of our top currency crosses to gain exposure.

On the charts, EURNZD still trades within a relatively wide upwards sloping channel, which so far has been corrective in nature. Our short term and long term biases are bearish, while slightly bullish for the medium term.

A daily close below the dynamic support area around 1.6310-50 will shift all our biases to bearish. A failure to breech the lower channel line would probably mean more lackluster trading to come while a decisive push below will fuel the selloff. We remain bearish for the long term until 1.6530-80 is taken out to the upside. 

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