EURNZD Double Top Formation Signals Potential Short Opportunity

9. Aug.

The EURNZD currency pair has recently formed a classic double top pattern at a significant supply area, signaling a potential reversal. This double top aligns with broader Forex seasonality trends, reinforcing the likelihood of a downward movement. The confluence of these technical and seasonal factors suggests that the current levels may offer an attractive entry point for short positions.

Traders observing this setup on a daily timeframe may find it an opportune moment to capitalize on the anticipated bearish trend. As the pair tests the supply zone for the second time, we are closely monitoring the price action for signs of a sustained reversal. With the added weight of seasonal analysis, this short position aligns with a broader strategy of trading in harmony with established market cycles.

We are considering a short position on EURNZD, targeting potential downside as the pair responds to the resistance offered by the supply area and the natural seasonality patterns in the Forex market.

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