Kiwi Traps Shorts
I'm bullish EUR/NZD whilst above Monday's low and looking for major upside (could break a multiyear trendline) but would note just above 1.5800 as a spot to take some off if it works.
Long term pattern - the rally from the 2015 low in impulsive (5 waves) and the decline from the 2015 high to the 2017 low is corrective (3 waves...classical chartist could call it a wedge too). The implication is that price will exceed the 2015 high while remaining above the 2015 low.
Short term pattern - the rally from the February low is impulsive (5 waves) and the decline from the March high is corrective (3 waves).
Recent action / Market Levels - Monday's low was at the top side of former corrective channel resistance (blue line on this chart). I call this the sling shot. It's my favorite setup. The recent low is also in line with lows from 2016 (July and September). Finally, Monday's low is 3 pips below the year open price...now that's respect. The drop on Friday completed a short term head and shoulders top. It did not last. Some of the best setups occur from failed patterns. That's a possibility here.
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