Preparation of the upcoming week, NZDUSD example
For the opening of this week I am waiting to see how the USD evolves on many pairs, with the set up in short that I showed at the end of last week on USDCHF I hope
a drop in the value of the US dollar. Knowing that big economic announcements are coming this week for AUD, USD, GBP and EUR the markets should move quite a bit and give us new information for possible future scenarios.
Today, I'm tackling NZDUSD which after breaking a downtrend channel in which it was since September 2021 or so, seems to be in a consolidation or accumulation phase to hopefully continue its upward movement.
We can see a break of the range in which we were at h4 and then return to the inside of the range in order to recover buying strength and continue our bullish impulse. If we now place ourselves in H1 or even M30 we can observe a strong bullish candle leaving behind a large gap. Moreover, this gap is located just above an area that has shown its importance in the past by being the demand level initiating the previous bullish impulse that created the new high. The rise has been too abrupt for all the longs inside of this area to be entered, so the objective would be to come and look for a position either at the level of our first grey zone once the gap is filled or at the level of the second zone below but which I think has already been exploited. By placing a SL close to the edge of the zone, a first tp keep a RR of 4 to then try to keep the position in swing to try to come to seek the previous highs which had been recorded in the descending channel mentioned at the beginning.
a drop in the value of the US dollar. Knowing that big economic announcements are coming this week for AUD, USD, GBP and EUR the markets should move quite a bit and give us new information for possible future scenarios.
Today, I'm tackling NZDUSD which after breaking a downtrend channel in which it was since September 2021 or so, seems to be in a consolidation or accumulation phase to hopefully continue its upward movement.
We can see a break of the range in which we were at h4 and then return to the inside of the range in order to recover buying strength and continue our bullish impulse. If we now place ourselves in H1 or even M30 we can observe a strong bullish candle leaving behind a large gap. Moreover, this gap is located just above an area that has shown its importance in the past by being the demand level initiating the previous bullish impulse that created the new high. The rise has been too abrupt for all the longs inside of this area to be entered, so the objective would be to come and look for a position either at the level of our first grey zone once the gap is filled or at the level of the second zone below but which I think has already been exploited. By placing a SL close to the edge of the zone, a first tp keep a RR of 4 to then try to keep the position in swing to try to come to seek the previous highs which had been recorded in the descending channel mentioned at the beginning.