Hey guys, this morning i want to share with you this setup i've noticed on this pair. Price has approached a resistance structure zone on Wednesday, and since then it's failed to create new highs and so it gave me reason to believe this is a good zone to short the market. In the daily chart we've recently exited an overbought condition and here on the 4hr chart you can see a nice divergence on the RSI. These are two clues that make me more confident on any particular trade. In addition price has created a double top with an engulfing kicker at the end of it. And pay attention also at the psychological round number that's sitting right there. I was waiting to see the marke open and for my rules it gapped too much, therefore i'm waiting for an additional confirmation of the sell. And there it is, another candle has closed engulfing right now. I'm selling this; stops above highs, target1 at 1:1 RR, target2 for extended target.
If you have any question, feel free to ask below. Otherwise, see you in the next chart! Have a good week!
Trade closed: stop reached
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We're still in the same reversal zone. Look for the break of the trendline and then sell the first retracement:
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Or you can short now based on the engulfing candle in confluence with 1.618 inversion:
I cannot place a cell limit order, so I've placedsell stop orders. PPOE 1.06053; TP1 1.0516. TP2 1.03691, TP3 03101
Roker1
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Hey @Glendooie, nice!
Glendoonie
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@Glendooie, Beware the GDT (gobal dairy trade) index that was released late yesterday.
More milk on the world market has driven down dairy prices, which slid 3.2 per cent at the Global Dairy Trade auction overnight.New Zealand's main export, whole milk powder (WMP), was down 3.7 per cent at US$3189 per metric tonne following a 1 per cent rise a fortnight ago.
GDT down NZD is effected. GDT down NZD down?
Glendoonie
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@Glendooie, here's a link to the forex calander I consulted before placing my trade. If I had waited a few more hours the GDT price would have been posted. A red flag has sometimes delayed me placing a trade :-)
@Glendooie, thanks for the detailed explanation, let's wait and see what price action tells us, i'm always skeptical about considering news events into my trading plan, since i haven't taken them into account when backtesting my strategies. Sometimes they just follow what technical analysis anticipates.