The EURNZD has fired off a Pin bar on the daily price action chart. This pin bar is sticking out and away and has been produced up at a swing high. Price has been fairly choppy and trading sideways of late on this pair with a lot of indecision candles, however in the last week price has made a solid run higher to be testing the recent old support area.
The recent old support area has been proven as support many times. Now that price has broken below the old support, this level may now look to act as a price flip level and become a new resistance. Price is testing the new resistance with the pin bar and at this stage price is holding.
For price to move lower the pin bar would need to be confirmed by price breaking lower through the pin bars low. The risk with this pin bar is that there is a Very Big Round Number below the pin bars low in the form of 1.6000. If price moves higher, the first level for price to test is the resistance level just discussed.
EURNZD Daily Chart
thx johnathon for your teaching, I already gain profit from this trade
this is a false pin bar