In the previous post, I said I was anticipating a decline in these prices. Once we saw a break of the structure, I quickly changed my bias from short to long. Considering the situation we are currently in, on a fundamental level, it seems to make more sense buying this market rather then selling it.
I managed to get a decent entry on this pair at 0.606:
On the technical side, we have the pennant in play with support coming in at a 38.2% ret, plotted as a 61.8% level on the chart, around 60.6. I am hoping stops are safe at 60.500, which is a very psychological level.
If we take a look at a 4H chart, its clear that the short term direction is up, with prices trading in an ascending channel. We see a rejection at a 61.8% ret. level, while bulls slowly managed to break the resistance sitting at the 61.8% ret.
We are still making our way through the supply, once broken price is potentially going to rally up to around 61.700. This is the projected target for the pennant chart pattern.
Good luck to all trading NZDUSD
I managed to get a decent entry on this pair at 0.606:
On the technical side, we have the pennant in play with support coming in at a 38.2% ret, plotted as a 61.8% level on the chart, around 60.6. I am hoping stops are safe at 60.500, which is a very psychological level.
If we take a look at a 4H chart, its clear that the short term direction is up, with prices trading in an ascending channel. We see a rejection at a 61.8% ret. level, while bulls slowly managed to break the resistance sitting at the 61.8% ret.
We are still making our way through the supply, once broken price is potentially going to rally up to around 61.700. This is the projected target for the pennant chart pattern.
Good luck to all trading NZDUSD
Comment:
Comment:
Potential double bottom formation in the making:
Comment:
Price broke the support level located at 60.6. On a daily chart we can price forming an ascending triangle, but a hidden bearish divergence is not confirming the bullish bias. I also highlighted some potential support levels, where most moves tend to terminate and reverse if only temporary.: