New Zeland Dollar is showing the first signs of bullishness after the strong downtrend.
First signs of reversal came yesterday after price respected trendline flip into the demand which was made last week after strong buying on 23rd and 24th of May and making a first higher high after 38 trading days, we also tested High of Value area from 23rd of May which was untested Volume Profile.
This price action alone doesn't confirm the start of the trend by itself, more confident entry should be found after breaking above the supply which stopped the price at the beginning of this week to push higher.
Once we flip this level more upside should be made.
Resistance levels on the way up:
If the price is going to reach a supply for the second time, be aware of the amount of order flow resting above the clean double top, this can result in a fakeout and continuation lower, because of this structure, wait for higher timeframe confirmation in the form of candle close or bullish market structure on lower timeframes.
Trade idea is invalidated if the price will break below the demand zone, in this case, we can expect much lower prices.
First signs of reversal came yesterday after price respected trendline flip into the demand which was made last week after strong buying on 23rd and 24th of May and making a first higher high after 38 trading days, we also tested High of Value area from 23rd of May which was untested Volume Profile.
This price action alone doesn't confirm the start of the trend by itself, more confident entry should be found after breaking above the supply which stopped the price at the beginning of this week to push higher.
Once we flip this level more upside should be made.
Resistance levels on the way up:
- 0.65956
0.66851
0.67506
If the price is going to reach a supply for the second time, be aware of the amount of order flow resting above the clean double top, this can result in a fakeout and continuation lower, because of this structure, wait for higher timeframe confirmation in the form of candle close or bullish market structure on lower timeframes.
Trade idea is invalidated if the price will break below the demand zone, in this case, we can expect much lower prices.
Comment:
1st Target Hit