Most of the time, when the market gets near an important long term level, it tends to trade a short term range (which is what we call the “zone” – or The SF Box).
When it gets to that level there a fierce battle between buyers and sellers and it makes the market range.
And this is the time for us to look for range trades. For instance, this is the EURNZD hourly chart:
EURNZD Analysis, forex, forex ranges, range trading
Yesterday I wrote about the EUR crosses, I mentioned that most of them are in a bullish condition, therefore I’m looking for long opportunities on most of them.
But what if you had one of the EUR crosses in a bearish condition? How do you deal with it?
Here is how I do it.
As you already know, most of the EUR crosses are in a bullish condition, including: the EURUSD, EURGBP, EURCAD and EURJPY.
But that’s not the case for the EURNZD, in fact, the EURNZD is actually trading in a bearish condition. Yesterday it broke through an important support level and the bearish condition was triggered. Here is the chart:
Currency correlation, EURNZD Analysis