Hello Traders,
Here is the Top-Down Analysis of NZDUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 42 - 12 Oct
M > Market is moving in a downward channel. Price broke out of channel to test monthly resistance level. This level previously pushed price to downside and we expect price to get pushed down again. Price can drop down to create inverse H & S before making huge bullish move to the upside.
W > Price moved out of channel creating HH and HL, after rejection at resistance level price made an attempt to drop down but was unable to break support created by last HL, this also coincided with top of channel acting now as support.
D > Price moved up in a rising channel creating and respecting W and M formations. Price made double bottom at support created by last HL. While dropping down from resistance level price created an M formation and as expected price pull back to test neck and complete the formation. Price was creating LH and LL but last bullish candle has broken resistance created by LH creating questions around our setup. We are aware that support created by top of monthly channel is now a big task for revalidation of our expectation from monthly chart. Price can drop creating a new LL and testing top of channel as support. This can push price to the upside. Price will have to break this level to further continue with bearish move.
As per COT NZD had closure of few Long and major Short increasing net positions, confirming strength of ZXY for the said week. Short positions have reduced to least in current year. ZXY has been gaining strength slowly since June 2020. ZXY improved its position last week.
4H > Price has approached supply zone creating HH and HL, we need to monitor price action for reversal of current trend.
Pair Correlation > Pair has a positive correlation with AUDJPY, AUDUSD, NZDJPY and AUDCHF and negative correlation with USDCAD, EURAUD and EURNZD.
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 NZDUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 42 - 12 Oct
M > Market is moving in a downward channel. Price broke out of channel to test monthly resistance level. This level previously pushed price to downside and we expect price to get pushed down again. Price can drop down to create inverse H & S before making huge bullish move to the upside.
W > Price moved out of channel creating HH and HL, after rejection at resistance level price made an attempt to drop down but was unable to break support created by last HL, this also coincided with top of channel acting now as support.
D > Price moved up in a rising channel creating and respecting W and M formations. Price made double bottom at support created by last HL. While dropping down from resistance level price created an M formation and as expected price pull back to test neck and complete the formation. Price was creating LH and LL but last bullish candle has broken resistance created by LH creating questions around our setup. We are aware that support created by top of monthly channel is now a big task for revalidation of our expectation from monthly chart. Price can drop creating a new LL and testing top of channel as support. This can push price to the upside. Price will have to break this level to further continue with bearish move.
As per COT NZD had closure of few Long and major Short increasing net positions, confirming strength of ZXY for the said week. Short positions have reduced to least in current year. ZXY has been gaining strength slowly since June 2020. ZXY improved its position last week.
4H > Price has approached supply zone creating HH and HL, we need to monitor price action for reversal of current trend.
Pair Correlation > Pair has a positive correlation with AUDJPY, AUDUSD, NZDJPY and AUDCHF and negative correlation with USDCAD, EURAUD and EURNZD.
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
