EURNZD H4 TF Analysis

Chart Overview

1. Key Levels Highlighted:
   • A marked Order Block (OB) in the red zone, indicating a potential supply area where price could reverse.
   • A structural MSS (Market Structure Shift), which hints at a potential change in trend direction.
2. Price Action:
   • The price is currently approaching the Order Block (OB), which aligns with resistance or a key area of interest.
   • There’s a visible short-term liquidity sweep (SS) as price pushes upward, aiming to tap into the liquidity near the OB.
3. Bearish Bias:
   • The plotted curve suggests a bearish move is anticipated once price taps into the OB zone.

Trade Setup Idea

Introduction:

This trade setup assumes that EUR/NZD might experience a rejection from the marked OB area, leading to a bearish move.

Plan:

1. Entry: Wait for price to enter the red OB zone (around 1.8550-1.8600). Look for bearish candlestick patterns (e.g., engulfing or pin bars) or confirmation from lower time frames.
2. Stop Loss (SL):
   • Place your stop loss slightly above the OB zone, approximately at 1.8625.
3. Take Profit (TP):
   • TP1: Near the recent swing low around 1.8350.
   • TP2: Extend towards 1.8250 for higher risk-reward.

Risk Management:

• Use no more than 1-2% of your account per trade.
• Confirm the setup with lower time frames (e.g., H1 or M15) to reduce false entries.

Scenario Validation:

• If price breaks and closes above 1.8625, this setup will be invalid, and you should reevaluate for potential bullish momentum.