TF: 8 Hr
Very clean and interesting completed H and S pattern following a previous uptrend. Currently the markets for NZD/AUD (risk currencies) are pulling back from recent declines due to global fears (trade wars, coronavirus, US tension in middle east etc.).
I am looking to see if current price can close down below blue supply/demand zone (H and S neckline). If this is the case, more downtrend can be expected as this would be a rejection at the broken neckline. Fibs are on the chart for possible rejection zones.
If trend continues down I would like to see price test 0.8750 zone. This area would be thee 0.618 fib retracement of the last bull run (late november to December). A bounce here would confirm previous resistance area turned to support. From there massive upside and continuation of the uptrend in my opinion.
Keep in mind we have some high impact NZD news today and yesterday RBA held the interest rate which sparked a large bullish spike in AUD and NZD pairs. Risk off is still in play and this current correction could lead to further downside. If price spikes and continues higher, then idea is invalid
See here for 0.618 and previous resistance confluence:
Very clean and interesting completed H and S pattern following a previous uptrend. Currently the markets for NZD/AUD (risk currencies) are pulling back from recent declines due to global fears (trade wars, coronavirus, US tension in middle east etc.).
I am looking to see if current price can close down below blue supply/demand zone (H and S neckline). If this is the case, more downtrend can be expected as this would be a rejection at the broken neckline. Fibs are on the chart for possible rejection zones.
If trend continues down I would like to see price test 0.8750 zone. This area would be thee 0.618 fib retracement of the last bull run (late november to December). A bounce here would confirm previous resistance area turned to support. From there massive upside and continuation of the uptrend in my opinion.
Keep in mind we have some high impact NZD news today and yesterday RBA held the interest rate which sparked a large bullish spike in AUD and NZD pairs. Risk off is still in play and this current correction could lead to further downside. If price spikes and continues higher, then idea is invalid
See here for 0.618 and previous resistance confluence:
Comment:
Looks like the H and S idea is invalid based on yesterday and todays price action