I have analysed a potential Double Bottom setup on the NZD/USD 1 Hour chart. I have setup a long position which I will take if the market follows the appropriate setup. The trade has a reward of 16.75% and a risk of 3.03%. Risk reward is 1 : 5.5.
I am newer to trading and am still learning so would appreciate and feedback on this analysis.
DXY Is slowly going into a downtrend, here on my analysis we can see a price level that was previous resistance and is now acting as support. I also think we may see a Head & Shoulders pattern forming and price rising as far as 1315.50 or perhaps turn around at 1302.95 and go back into a downtrend.
GBPUSD having broken higher through its 1.40 handle finding resistance at 1.4070 and the falling trendline connecting the major highs. Interesting area for support is 1.4025/1.4020 for a long and play this market back up to HoD or the 1.4050 handle and the falling trend line, high from Feb20. watch out for bullish price action off this level if its tested.
Looking to continue USD strength from overnight hawkish FOMC report. Good area of supply between 0.7830 - 0.7835, continuation of trend, fib 50% retracement, daily pivot and technical structure lining up together.
targets to the downside include session lows 0.7790, 0.7774 (Jan14 low point) & 0.7760 (Jan09 low point).
Price testing longer term trendline... also the 1.23 handle, and the highs from jan15 & jan19. Will be interesting to see if the trendline holds. Reward to risk is good at this level, ultimately aiming for the 1.25 area & 1.2550 highs and taking some off the table along the way in to the 1.24's. Intraday price is holding the s1 level so far, connecting the highs...
Entered this trade a little early should of waited for confirmation on gartley. However do think it will have a huge downtrend and potentially start new trends. Look at my reasons on the Chart for entering the position.