EURNZD: Price Action at a Key Decision Point

24 Jul 2014

I've been sitting in a short position on this trade since this morning and it hasn't really done much. What initially caught my attention was the fact that I was late to a deep bearish Gartley Pattern. When I looked a little closer I found that price action had moved up a previous level of structure and had refused to create a higher close.

I would like this setup a lot more if the RSI had gone oversold, but as a pattern trader my plan says to take the trade and with me only risking 45pips to potential gain 74 it was a no brainer.

Structure traders may want to check out price action on the hourly as we are consolidating at those highs with divergence on the RSI

HOWEVER, with New Zealand's ANZ business Conference at 9pm NY time, it may be worth proceeding with some caution.