Market Condition: EUR/NZD Pending Breakout
Target 1:1X Range Bullish .7286 Bearish .7019
Target 2: 2x Range Bullish .7372Bearish .6930
(Created Using TradingView Charts)
The EUR/NZD is set to conclude the trading week with the creation of an inside bar. So far in today’s session, the pair has failed to exceed Thursdays high or low. These points can now be used to pinpoint a breakout in next week’s trading. Bearish breakouts may begin beneath Thursday’s low of 1.5119 while bullish breakouts may begin above the high of 1.5265. Initial targets for a breakout may be set by extrapolating a 1X extension of the identified 146 pip range. This places initial bullish breakout targets near 1.5411, and bearish targets near 1.4973.
Traders should consider that price action may continue to consolidate in next week’s trading. In this scenario, traders may elect to continue to monitor the EUR/NZD for a breakout or opt to trade a continuing range. Also, it should be noted that false breakouts may occur in the event of a market reversal. Traders may consider using ½ the distance of the identified range to create a 1:2 risk reward scenario if the market breaks in either direction.
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