NZDUSD, Diamond Formation Detected, Continuation When Confirmed!

Hello Traders Investors And Community, welcome to this analysis where we are looking at NZDUSD the recent price-action, the current formation forming, and therefore the possibilities which resulting out of this formation in further price development in order to look for appropriate trading opportunities. The last time NZDUSD was in a decent and solid uptrend but this uptrend now begins to weaken and shows bearish signals as it is approaching resistance above furthermore, it is forming a possible rare diamond formation which is a reversal formation marking the top and stopping of the prior established bullish trend, as the trend begins to weaken this can be the crucial factor in the further development of NZDUSD price-action.

As you can watch in my chart NZDUSD has stopped its established uptrend and began to weaken at the 0.658 to 0.659 level which is a strong resistance here and also marked by the blue box in my chart, the price severely tested this level and failed which formed the first half of this formation with three successive up moves and the second half of this formation with currently four touches of resistance altogether forming the diamond formation as you can see it has the form of a diamond. As the price keeps failing at resistance we can expect the formation to confirm sooner or later which will happen when the price falls below the lower boundary of the formation and closes below this level to continue further.

When the confirmation sets in this can be a good place to look for a decent short-entry either with an aggressive entry directly after the confirmation or with the conservative entry when the formation once more confirms and then continues to move to the downside. The former confirmation will activate the overall downside targets which are projected from the top of the formation to the bottom and from the breakout to the downside, in this manner, we get the 0.648 to 0.649 as target zone which is also support marked with the orange box where NZDUSD can stabilize and needs to be elevated what can happen in this range, overall this formation is building up a high possible setup for downside continuation when confirmed in the schedule.

In this manner, thank you for watching, support for more market insight, have a great day, and all the best to you!
Prosperity is the blessing of the old market, adversity is the blessing of the new.

Information provided is only educational and should not be used to take action in the markets.