Interesting pair in terms of development at the moment, as highlighted on the daily and weekly chart, price is currently at a key resistance zone formed in December '19 and re-tested over the last week or so. I have highlighted several instances on the timeframe over the last few years where this pair has reacted very aggressively to meeting the last significant key area of support/resistance and it tends to initiate a big move off of the zone, hence why I am tempted to short this pair if we see an initial rebound off the resistance.
The daily timeframe offers me further confirmation in that this lines up well with the Bollinger bands and price returning to the median, as well as several tentative candles last week indicating price's reticence to move higher. This forming double top allows me a nice tight stop up near 89 at which point my analysis will be invalid and a lovely risk reward of 3.1:1 with my targets down at 85, which I feel is definitely achievable but accept that this target may take a while to be hit. The only thing putting me off this trade is I expect a stronger NZD this week across the board, with good fundamentals and lots of other indicators favouring the NZD, but the analysis is still valid I think.
I'm not seeing a great deal of interest this week in line with my strategy, but think some big moves are possible! I like the look of shorting silver but will be very conservative on entry, I wish you all a prosperous and profitable trading week guys good luck.
The daily timeframe offers me further confirmation in that this lines up well with the Bollinger bands and price returning to the median, as well as several tentative candles last week indicating price's reticence to move higher. This forming double top allows me a nice tight stop up near 89 at which point my analysis will be invalid and a lovely risk reward of 3.1:1 with my targets down at 85, which I feel is definitely achievable but accept that this target may take a while to be hit. The only thing putting me off this trade is I expect a stronger NZD this week across the board, with good fundamentals and lots of other indicators favouring the NZD, but the analysis is still valid I think.
I'm not seeing a great deal of interest this week in line with my strategy, but think some big moves are possible! I like the look of shorting silver but will be very conservative on entry, I wish you all a prosperous and profitable trading week guys good luck.