NZDUSD | Perspective for the new week | Follow-up details
Since my last publication on this pair (see link below for reference purposes; the price has moved a little above 50pips in our direction as we witnessed a transition into a consolidation phase which also explains the doubt/indecision in the market in the last 3 weeks. Despite observing multiple rejections from the $0.69200 area in the last week, I suspect that the Greenback is setting up for strong gains in the coming week(s).
Tendency: Downtrend (Bearish)
Structure: Supply & Demand | Reversal pattern (Double Top) | Trendline
Observation: i. The Bearish Trendline (see weekly chart) reflects that price has been caught within a Bearish scope since late May 2021 with strong tendencies of a risk of further decline for the Kiwi in the coming week(s).
ii. Conspicuously, multiple rejections of $0.70400 making a confluence with the Bearish Trendline during last week trading session validates my plan to shorting the Kiwi.
iii. Double Top: The appearance of an extremely bearish technical reversal pattern after the price reached a peak two consecutive times ($0.70450 & $0.70390 respectively) with a moderate decline between the two highs further support a Bearish bias as I look forward to a Breakdown/Retest of Bullish Trendline (indicated on shart) in the coming week.
iv. Please note that below the Key level @ $0.70100 remains a yardstick to shorting.
v. A Breakdown/Retest of Neckline @ $0.69750 might welcome addition to the existing position.
vi. And a successful Breakdown/Retest of $0.69200 ( a level that held price "supported" in the last week) might be the straw that will break the camel's back for significant sell continuation.
vii. CAUTION: A breakout and retest of the $0.70400 area shall render the narrative invalid and I shall be switching position for a rally!... Trade consciously!😊
Trading plan: SELL confirmation with a minimum potential profit of 120 pips.
Risk/Reward: 1:6
Potential Duration: 2 to 5days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates 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.
Tendency: Downtrend (Bearish)
Structure: Supply & Demand | Reversal pattern (Double Top) | Trendline
Observation: i. The Bearish Trendline (see weekly chart) reflects that price has been caught within a Bearish scope since late May 2021 with strong tendencies of a risk of further decline for the Kiwi in the coming week(s).
ii. Conspicuously, multiple rejections of $0.70400 making a confluence with the Bearish Trendline during last week trading session validates my plan to shorting the Kiwi.
iii. Double Top: The appearance of an extremely bearish technical reversal pattern after the price reached a peak two consecutive times ($0.70450 & $0.70390 respectively) with a moderate decline between the two highs further support a Bearish bias as I look forward to a Breakdown/Retest of Bullish Trendline (indicated on shart) in the coming week.
iv. Please note that below the Key level @ $0.70100 remains a yardstick to shorting.
v. A Breakdown/Retest of Neckline @ $0.69750 might welcome addition to the existing position.
vi. And a successful Breakdown/Retest of $0.69200 ( a level that held price "supported" in the last week) might be the straw that will break the camel's back for significant sell continuation.
vii. CAUTION: A breakout and retest of the $0.70400 area shall render the narrative invalid and I shall be switching position for a rally!... Trade consciously!😊
Trading plan: SELL confirmation with a minimum potential profit of 120 pips.
Risk/Reward: 1:6
Potential Duration: 2 to 5days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates 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.
Comment:
Breakdown of NECKLINE found on Weekly perspective
Trade smart. Trade consciously
