NZDUSD | Perspective for the new week | Follow-up details
It is over 200pips move in our direction since my last publication on this pair (see link below for reference purposes - the positive outcome from this speculation is indeed interesting as one of my client did not believe in our sell position hence he closed the trade😄and lost the opportunity to recover his account) and it appears that we have milked the Bearish move to its end as the appearance of a reversal set-up at this juncture hints at a possible rally which might be a correction of the impulse leg we took advantage of. The Kiwi hit 10-month lows on Friday as coronavirus lockdowns undermined their economies and pushed out policy tightening hereby sparking a steep drop in bond yields.
After hitting a month low @ $0.68050 early in the week, the Kiwi bounced higher in a rangebound trade to post a slight gain at the end of the week with signs of a reversal in the air should price break and close above key level @ $0.68400.
Tendency: Uptrend (Bullish)
Structure: Supply & Demand | Reversal pattern (Double Bottom)
Observation: i. Since the beginning of the month of August 2021, we witnessed a spiral move downward as the price continued to find lower lows.
ii. After hitting bottom @ $0.68100, we witnessed multiple rejections of this level during the latter part of last week trading session which gave rise to the appearance of a Double Bottom pattern - a very strong reversal setup.
iii. Double Bottom: a charting pattern that describes a change in trend and a momentum reversal from prior leading price action shall be confirmed as soon as the price does a Breakout/Retest of the Neckline which is also my Key level at this juncture.
iv. Considering the Bearish momentum on this pair; it is advisable that we become patient for confirmation which shall be at the completion of reversal pattern to hop in the rally.
v. Please note that this reversal might be a correction of the bearish impulse leg (temporarily bullish) and if the price breaks above a 61.8/78.6% retracement then we can be looking at the possibility of an outright reversal... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 100 pips.
Risk/Reward: 1:5
Potential Duration: 3 to 7days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
This is a long-term perspective and you might watch this space for speculation on lower time frames as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
After hitting a month low @ $0.68050 early in the week, the Kiwi bounced higher in a rangebound trade to post a slight gain at the end of the week with signs of a reversal in the air should price break and close above key level @ $0.68400.
Tendency: Uptrend (Bullish)
Structure: Supply & Demand | Reversal pattern (Double Bottom)
Observation: i. Since the beginning of the month of August 2021, we witnessed a spiral move downward as the price continued to find lower lows.
ii. After hitting bottom @ $0.68100, we witnessed multiple rejections of this level during the latter part of last week trading session which gave rise to the appearance of a Double Bottom pattern - a very strong reversal setup.
iii. Double Bottom: a charting pattern that describes a change in trend and a momentum reversal from prior leading price action shall be confirmed as soon as the price does a Breakout/Retest of the Neckline which is also my Key level at this juncture.
iv. Considering the Bearish momentum on this pair; it is advisable that we become patient for confirmation which shall be at the completion of reversal pattern to hop in the rally.
v. Please note that this reversal might be a correction of the bearish impulse leg (temporarily bullish) and if the price breaks above a 61.8/78.6% retracement then we can be looking at the possibility of an outright reversal... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 100 pips.
Risk/Reward: 1:5
Potential Duration: 3 to 7days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
This is a long-term perspective and you might watch this space for speculation on lower time frames as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Trade smart. Trade consciously
