Hello Traders,
Here is the Top-Down Analysis of NZDUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 50 - Dec 07
M > Price has been bullish for past 3 months and it it made a false breakout while testing monthly resistance level. We can expect correction to the downside. We can see a W formation and its neck is close to 0.5 Fib level on monthly bullish impulse.
W > Price has broken several key levels in its last bullish rise during past 5 weeks. It ended the week with a rejection pin bar.
D > Market is in overbought state and ended the day with rejection candle. However after an impulsive bullish we would require break of a structural level for reversal confirmation. Currently price has not broken below daily demand zone and we will wait for price to break the level to confirm bearish reversal.
As per COT NZD further added few Long but closed Short bringing Long to the highest for the year and net positions to highest for the year, ZXY has gained strength since all of November and closed last week with rejection after testing June 2018 level as resistance. We can expect correction to the downside for NZD.
4H > Price has tested last HL but has not broken the level to create a LL. Wait for price action break the level and upon its return to test the level as resistance we will get a nice opportunity to enter Short.
Pair Correlation > NZDUSD has a positive correlation with NZDJPY, GBPUSD, NZDCHF, NZDCAD and AUDUSD and negative correlation with EURNZD and GBPNZD.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of NZDUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 50 - Dec 07
M > Price has been bullish for past 3 months and it it made a false breakout while testing monthly resistance level. We can expect correction to the downside. We can see a W formation and its neck is close to 0.5 Fib level on monthly bullish impulse.
W > Price has broken several key levels in its last bullish rise during past 5 weeks. It ended the week with a rejection pin bar.
D > Market is in overbought state and ended the day with rejection candle. However after an impulsive bullish we would require break of a structural level for reversal confirmation. Currently price has not broken below daily demand zone and we will wait for price to break the level to confirm bearish reversal.
As per COT NZD further added few Long but closed Short bringing Long to the highest for the year and net positions to highest for the year, ZXY has gained strength since all of November and closed last week with rejection after testing June 2018 level as resistance. We can expect correction to the downside for NZD.
4H > Price has tested last HL but has not broken the level to create a LL. Wait for price action break the level and upon its return to test the level as resistance we will get a nice opportunity to enter Short.
Pair Correlation > NZDUSD has a positive correlation with NZDJPY, GBPUSD, NZDCHF, NZDCAD and AUDUSD and negative correlation with EURNZD and GBPNZD.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX