EURNZD after producing a bullish daily engulfing candle has been bullish on the H4 chart. The price had a rejection from a level of resistance and has been on a correction. There is a level that has the potential to be a level of support. If the level is held and produces an H4 bullish engulfing candle, then an H1 candle would be the signal to go long on the pair. Let us have a look at the H4 EURNZD chart. This trade idea was generated by our powerful Elite Swing Trader System.

The price went up to the level of 1.73835. The price had rejections twice at that level. It now has been on a correction. The level of 1.73080 is very nearby where the price is now. The H4 chart shows that the price reacted at this level several times earlier. If this level is held and it produces an H4 bullish engulfing candle, then the buyers are to wait for an H1 breakout at the level of 1.73835 to go long on the pair. There is enough space for the price to travel towards the North. This would allow the buyers to have a good risk and reward ratio as well. Let us have a look at the summary of the trade

• Buy Stop Order: 1.73882
• Stop Loss: 1.73186
• Take Profit: 1.75232

Most of the pairs started with a gap today. Price action trading gets difficult when there is a significant gap. EURNZD did not start with any gap though. Thus, I assume that the pair may attract more traders to get engaged with it which shall bring more liquidity as well. 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.