I still remain bearish on EURUSD. As usual, I did my weekly scan during the weekend to choose the few pairs I may trade during this week among the pairs on my watch list. I will be looking to trade three pairs during the week: EURNZD, GBPUSD and USDCAD. I use a 5-7 step approach to arrive at the choice of 3-4 pairs to trade. For the purpose of sharing ideas, and receiving any critique from fellow traders, here is a summary of the analysis I did towards arriving at trading EURNZD this week. [B]I may be wrong.
A relatively big pinbar (last week) compared to previous (two week’s ago), body more than thrice size of previous but with a short upper wick, no wick at low end. RSI and ADX on weekly portend a strongly bearish price action with good momentum. The 4H time frame indicated bearish continuation. Look to go for a southward trade during the week using a mean reversion strategy.