New Zealand Dollar has been one of the strongest pairs of the Forex market recently.
As you can see on the chart euro has been under performing NZD since late March.
Back in March it made a descending triangle top and broke it to the down side.
Since then it has been trading in a trading range between 1.825 ish which was the previous support of the topping formation and the support of the new range at 1.76 ish which bounced the price few times.
However it looks like it has made a continuation head and shoulders inside the range ( yes they can be continuation patterns as well :) ) and completed the formation by a break below its support few days ago. Target of the H&SH is around 1.7 .
A pull back to the previous support zone should be a good entry for a short trade. Because the zone should act as resistant now.
The first support zone below the price is around 1.715.
This trade idea has 2.5 risk to reward ratio.