Hey Traders,
Looking on the 4H chart for NZD/USD here, we've got a very interesting setup. As you can see we've had three solid bullish moves as marked by the purple rectangles, each supplying a solid demand area. The bottom 4 hour demand area is an area which I believe this price will come back down to and will bounce accordingly. You can see the solid bull run we have had from that area, yes, we did have one of the early candles in that move come back down and test that demand but I want to see full price action come back in and test that. If we do manage to get down to 0.677, I will also be looking to take this long from there.
You can see that we filled supply at the top of the chart, we have just taped in there as outlined by a little blue circle on the wick. Once we taped up in there, we had a solid bearish push indicating there may be some more bearish power coming into play.
While I'm not looking to just enter blindly when we come up to this 4 hour weak supply. I do want to see a solid bounce down on the 1H or 15M chart. As usual, I want to see a trend line break, I want to see some structure breaks, I want to see a solid indication that we are going to head lower from this area before taking the trade. We have some pretty obvious take profit points on the chart. Overall, I'm looking for a 200pip move over the next week. It will be interesting to see how it performs given NZD usually coincides with the AUD and I'm expecting Aussie dollar strength over the future, so keep an eye on this. Let's see how it plays out and I'll keep you updated.
If you have any questions, please ask away in the comments!
Looking on the 4H chart for NZD/USD here, we've got a very interesting setup. As you can see we've had three solid bullish moves as marked by the purple rectangles, each supplying a solid demand area. The bottom 4 hour demand area is an area which I believe this price will come back down to and will bounce accordingly. You can see the solid bull run we have had from that area, yes, we did have one of the early candles in that move come back down and test that demand but I want to see full price action come back in and test that. If we do manage to get down to 0.677, I will also be looking to take this long from there.
You can see that we filled supply at the top of the chart, we have just taped in there as outlined by a little blue circle on the wick. Once we taped up in there, we had a solid bearish push indicating there may be some more bearish power coming into play.
While I'm not looking to just enter blindly when we come up to this 4 hour weak supply. I do want to see a solid bounce down on the 1H or 15M chart. As usual, I want to see a trend line break, I want to see some structure breaks, I want to see a solid indication that we are going to head lower from this area before taking the trade. We have some pretty obvious take profit points on the chart. Overall, I'm looking for a 200pip move over the next week. It will be interesting to see how it performs given NZD usually coincides with the AUD and I'm expecting Aussie dollar strength over the future, so keep an eye on this. Let's see how it plays out and I'll keep you updated.
If you have any questions, please ask away in the comments!
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