30 Jan EUR NZD Potential “Step Ladder” Effect
After watching a recent “step ladder” effect play out on CAD:JPY, I’ve noticed a similar set up in EUR:NZD that may end with the same fate.
Here’s the old CAD:JPY chart showing how the step ladder effect played out:
EUR:NZD is now showing potential of price following a similar pattern. The minimum measured down side target on a break of this support would be a measured move that can be calculated at the time of the break and usually offers a 1:1 risk/reward but in the case of EUR:NZD there is a downwards sloping trend line underneath the current price that would make for a nice initial downside target:
For now, this is just a trading idea and not something I’ve absolutely set my sights on trading, but were it to play out in a similar way to the recent CAD:JPY set-ups, I’d be interested in taking a position if I could run tight-ish stops and targeting that falling trend line that originated in September 2010.