Hello Traders,
Here is the Top-Down Analysis of GBPNZD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 48 - Nov 23
M > Market is moving in a rising channel. Price reached support of channel coinciding with monthly support. We can expect a move to the upside.
W > Price dropped to test support level again in two weeks filling in the wick of last weekly candle. We can see bullish divergence and can expect a rejection to the upside, however price can come down fill wick again.
D > Price has dropped in fact thrice to test weekly support facing rejection, last daily candle ending in hammer. We can see bullish divergence.
As per COT GBP saw closure of Long and addition of Short, reducing net positions further, however N-R have added Long and closed Short and Commercials have closed both Long and Short positions - bringing Short for them to least in current year. BXY however has been gaining strength for past 3 weeks. GBP is seeing closure of Long since August, bringing overall position of Long almost same as position held by N-R. Open interest in GBP has also reduced during the same period. NZD further added both Long and Short improving net positions to max for the year, ZXY has been gaining strength for past 3 weeks, it is now testing a major resistance level. We can expect some correction this week.
4H > We can see rejection at support level however we can all see bears putting all-in to push the price down. We will wait for price to create HH and on its way down to make HL will provide us an ideal Long entry.
Pair Correlation: GBPNZD has positive correlation with EURAUD and negative correlation with NZDCAD, AUDCHF, AUDCAD and AUDUSD.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of GBPNZD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 48 - Nov 23
M > Market is moving in a rising channel. Price reached support of channel coinciding with monthly support. We can expect a move to the upside.
W > Price dropped to test support level again in two weeks filling in the wick of last weekly candle. We can see bullish divergence and can expect a rejection to the upside, however price can come down fill wick again.
D > Price has dropped in fact thrice to test weekly support facing rejection, last daily candle ending in hammer. We can see bullish divergence.
As per COT GBP saw closure of Long and addition of Short, reducing net positions further, however N-R have added Long and closed Short and Commercials have closed both Long and Short positions - bringing Short for them to least in current year. BXY however has been gaining strength for past 3 weeks. GBP is seeing closure of Long since August, bringing overall position of Long almost same as position held by N-R. Open interest in GBP has also reduced during the same period. NZD further added both Long and Short improving net positions to max for the year, ZXY has been gaining strength for past 3 weeks, it is now testing a major resistance level. We can expect some correction this week.
4H > We can see rejection at support level however we can all see bears putting all-in to push the price down. We will wait for price to create HH and on its way down to make HL will provide us an ideal Long entry.
Pair Correlation: GBPNZD has positive correlation with EURAUD and negative correlation with NZDCAD, AUDCHF, AUDCAD and AUDUSD.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX