EURNZD bullish pin bar rejection forms at market hot spot

January 12, 2014 in Forex Analysis

eurnzd hot spot rejection

So, the first NFP release came out last week and sent shockwaves through the market as the job report was much worse than expected. The AUD and NZD certainly gained a lot of ground from the release and as a result a nice short price action signal developed on the EURNZD.

EURNZD has already aggressively sold off from a weekly resistance level, displaying angry bears in this market, now the market has retraced to test a swing level which did hold as new resistance as higher prices were denied. The Friday candle did close as a bearish rejection candle with a nice bearish close to the body. This area also lines up with the mean value dynamic resistance, creating a nice bearish hot spot in the market for sell signal to develop.

Looking to grab retracement entries on Monday, if the trade works with us and plays out as planned, there is plenty of room for the market to move lower before hitting a weekly support level.

Comments are closed.