Absolute Top

Choppy chart

One of the worst charts on the Dynamic Trader radar has been the EURNZD. The daily chart has experienced some choppy price action in recent times but is price about to break out?

The daily chart below shows price breaking out of the yellow shaded area which is a large consolidation zone.

Consolidation zone

However, if we look at the bigger picture below.

EURNZT moving average

Price is still very much in consolidation and currently reacting to the 200 period moving average.

So as before, this is NOT a trading candidate and we want to stay away from this currency cross until price starts exhibiting good trending characteristics.

For trend traders, knowing what not to trade is very important.

Good trend trading…

Javid Shaik

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