The EURNZD daily chart rally has started to slow right down as sellers start to come in the market approaching the weekly resistance area. Last session we did get a very small rejection candle form here – nothing to get excited about normally but the weekly level does look like a strong one.
Price is extended from the mean value – which basically mean value analysis communicates that a correction is highly possible.
If this market decides to revert to the mean value, we could be looking at a 500 pip move here. These cross pair markets produce good price movement, and the volatility that us swing traders thrive on – that’s why this is one of my favorite markets to trade.
A break of the low could kick off the reversion – we’re already starting to see rejection of higher prices this session. This setup provides a tight stop loss for any punters how there who like to trade these more aggressive signals. Nice reward here too if this one plays out as anticipated.