Hello Traders,
Here is the Top-Down Analysis of EURNZD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 42 - 12 Oct
M > Market is moving in a rising channel. Price tested monthly support, faced rejection and started upward move.
W > Price created double bottom at support level.
D > We saw an M formation and as expected price moved up to test its neck and complete the formation. While rising up price faced rejection at supply zone but still managed to create HH. After testing our target price reversed, dropped and is moving towards our next target. However for final confirmation of break of bullish trend price must break last LH to create a LL.
As per COT EUR saw closure of Long and addition of Short, reducing net positions; improving its position for the said week. EXY further improved its position last week. NZD had closure of few Long and major Short increasing net positions, confirming strength of ZXY for the said week. Short positions have reduced to least in current year. ZXY has been gaining strength slowly since June 2020. ZXY improved its position last week.
Overall EUR has huge quantum of net position, since past 2 quarters, with much more open Long positions than Short. This reflects Institution holding their Long positions for bigger gain in time to come, EUR will continue to be strong till the time we see major chunk of Short added for Institutions.
4H > Price is dropping with bearish move, we will monitor price action around test zone. We can expect continuation of bearish move if price breaks this zone and bullish move if price fails to break.
Pair Correlation > EURNZD has positive correlation with EURAUD and GBPNZD and negative correlation with NZDCHF and NZDJPY.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of EURNZD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 42 - 12 Oct
M > Market is moving in a rising channel. Price tested monthly support, faced rejection and started upward move.
W > Price created double bottom at support level.
D > We saw an M formation and as expected price moved up to test its neck and complete the formation. While rising up price faced rejection at supply zone but still managed to create HH. After testing our target price reversed, dropped and is moving towards our next target. However for final confirmation of break of bullish trend price must break last LH to create a LL.
As per COT EUR saw closure of Long and addition of Short, reducing net positions; improving its position for the said week. EXY further improved its position last week. NZD had closure of few Long and major Short increasing net positions, confirming strength of ZXY for the said week. Short positions have reduced to least in current year. ZXY has been gaining strength slowly since June 2020. ZXY improved its position last week.
Overall EUR has huge quantum of net position, since past 2 quarters, with much more open Long positions than Short. This reflects Institution holding their Long positions for bigger gain in time to come, EUR will continue to be strong till the time we see major chunk of Short added for Institutions.
4H > Price is dropping with bearish move, we will monitor price action around test zone. We can expect continuation of bearish move if price breaks this zone and bullish move if price fails to break.
Pair Correlation > EURNZD has positive correlation with EURAUD and GBPNZD and negative correlation with NZDCHF and NZDJPY.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
