NZDUSD - On the watch list - Expect increasing volatility
NZDUSD could provide some excitement for the next few weeks (or longer) with increased volatility as it's long-term trend gets determined.
See charts below for more further perspective.
1D:
1D ZOOM:
LH/LL. Current candle volatility. I missed the last LH, which would have been an ideal sell entry point.
Daily close above yellow box (resistance zone) would be bullish. Closely watch price action of completed candles.
1W:
Hasn't been quite able to break through the support zone. Currently in this large support zone. Weekly close below .678 would support further declines. NZDUSD is at a key decision area. Watch for volatility to increase and false signals ("fake out break outs").
Notice the resistance zone was broken on it's third test (the blue circle). We are current on the third test of the now support zone. Will history repeat itself? Also notice the increase volatility that occurred in the blue circle. Extremely easy to get sucked in. Also extremely easy to be right on the direction, but still end up with a lose due to SL triggered.
1M:
Main thing to take from Month chart is most recent months have been bearish. While there are support zones, there still is plenty of room to the downside. Monthly provides little perspective on the actual trade.
Trading Recommendation (or my plans):
- Watch price action especially around key areas.
- Identify the areas where short/long bias will be determined prior to entering trade.
- Focus on short-term trades. Take advantage of volatility.
- Expect "fake out's" and "take out's". Watch for false signals AND be ready if a SL is taken out, but the trade is still viable, look for another entry point AS LONG AS bias remains valid.
I have a short/neutral bias at this time. Strong bearish price action in the pink S/R zone would signal short entry. Daily close below last LL would be strongly bearish.
See charts below for more further perspective.
1D:
Daily close above yellow box (resistance zone) would be bullish. Closely watch price action of completed candles.
1W:
Notice the resistance zone was broken on it's third test (the blue circle). We are current on the third test of the now support zone. Will history repeat itself? Also notice the increase volatility that occurred in the blue circle. Extremely easy to get sucked in. Also extremely easy to be right on the direction, but still end up with a lose due to SL triggered.
1M:
Trading Recommendation (or my plans):
- Watch price action especially around key areas.
- Identify the areas where short/long bias will be determined prior to entering trade.
- Focus on short-term trades. Take advantage of volatility.
- Expect "fake out's" and "take out's". Watch for false signals AND be ready if a SL is taken out, but the trade is still viable, look for another entry point AS LONG AS bias remains valid.
I have a short/neutral bias at this time. Strong bearish price action in the pink S/R zone would signal short entry. Daily close below last LL would be strongly bearish.
