Double/triple top in the making: NZD/USD Short
Double top if not triple top is in the making in the 1hr timeframe (denoted by arrows 1, 2 and 3). However, the price action is still a very bullish at the current moment and I will only look to short when the bear candles forms in the next 2 to 3 candles. if the price DOES forms bearish candles over the next 2 hours, it should be obvious that price is unable to break 1.7333 to 1.7345 region.
We have a area of support denoted by the blue rectangle. Therefore be careful with the short at this area and be ready to take any profit on any bullish price action or trail your stop loss at this area. If price is able to break through this area of support, price should have no problem going down to end of the trench at 0.724 were the area of support will become area of resistance we can look for more short opportunities there.
In the long run, I am expecting price to reach 0.705.
We have a area of support denoted by the blue rectangle. Therefore be careful with the short at this area and be ready to take any profit on any bullish price action or trail your stop loss at this area. If price is able to break through this area of support, price should have no problem going down to end of the trench at 0.724 were the area of support will become area of resistance we can look for more short opportunities there.
In the long run, I am expecting price to reach 0.705.
Trade active:
3rd hour, price is making a good lower high and lows. Took a short trade from 0.7326. Let's see...
Comment:
Currently in the red, price looking to be forming another "double top" in the 15/30 min timeframe. I'm still positive of short as long as 0.7345 holds. If breaks past 0.7345, I will look to close or hedge (for experience traders) position.
Comment:
Nice bearishness, but please look out as price is now entering the level of support.
Comment:
Price has entered the level of resistance, and as we can see is rejected as it reached the resistance at 0.7276. I am expecting price to retest this level again and if broken, can reach 0.72442
Comment:
Price has retested 0.7276 resistance again but was rejected. At this moment, the price is forming a bullish engulfing candle. I am expecting price to reach 0.7303 first before coming down to retest the 0.7276 resistance again. This could be a move to trap people into buying, therefore have to watch closely.
Comment:
As expected, price did revisit 0.7303 and then went down to break through the 0.7276 resistance. For some reason my pending order was not triggered, but at this moment, there is another opportunity to add position. I am expecting to try to test the 0.7276 support-turned-resistance. This level should be a good area to add entry.
Comment:
NZD seems to be gathering a lot of strength across all the pairs. Price might retest 0.7303 again.
Trade closed: target reached