The last 4 bullish candles are showing weakness as each bullish candles are getting smaller and smaller.
A break below the recent support followed by retest of the support-turned-resistance, is a good entry to sell.
Once W pattern reach 0.62332 area, there is high a probability that it will revisit the neckline. at 0.60000 area.
0.62332 area used to be a previous support and will likely become resistance.
If the market shows bearish momentum at 0.62332 area, the target level will be at the neckline at 0.59750
I checked the USDCNH and the price has drop away from the planned trade. However, the bullish impulse formed in W1 TF is still in tact as it retrace in 38.2 Fib retracement so I see a possible long position if there will be another rally on the upside
For the past couple of days, the pair is not able to close previous (2019) high, this has also formed a right should lower than the left should which suggest that the pair is losing its momentum on the upside. thirdly, the gap is something to watch out and is poised to close it.
After a pullback, the pair is ripe for another drop in consideration of COTR's weak longs and strong shorts for NZD which suggests that NZD are getting weaker, while USD are also weak on their longs but their shorts are not increasing which suggest that the longs on USD are still in control.