EURNZD has been bullish on the daily chart. The bullish momentum may have been lost.  The price is right at a level where it had a rejection earlier. Thus, there is a strong possibility that the price changes its trend and come down. The H4 chart shows that the price may end up producing a double top. If that happens, the H4 sellers will be eagerly waiting for a breakout at the swing low which is the neckline of the potential double top. Let us have a look at the H4 EURNZD chart... This trade idea was generated by our powerful Elite Swing Trader System.

The H4 chart shows that the level of 1.76635 is the level of resistance where the price had a rejection earlier. After producing a bearish engulfing candle, it came down up to the level of 1.74405. It has been heading towards the upside again. If the price gets another rejection from the resistance level and makes an H4 breakout at the level of 1.74405, then going short on the pair would get us some green pips with a good risk and reward ratio. Let us have a look at the summary of the trade...

• Sell Stop Order: 1.74402
• Stop Loss: 1.75468
• Take Profit: 1.73437

According to the trade setup, we are eyeing on the price to make a downside breakout and come down. We must remember that the whole picture will be changed if the price makes an upside breakout. That is less likely to happen since the level of resistance seems to be very strong. However, it may happen, thus we must not take a short entry before it makes a breakout at the potential neckline. For more trade ideas, join the Price Action Society... If you like our analysis and would like to receive 3 to 7 trade ideas per day, then click here to learn more about Price Action Society.