NZDUSD, Huge Triangle-Formation Which Can Show Up Proper Setup!

Hello Traders Investors And Community, welcome to this analysis where we are looking at NZDUSD 12-hour timeframe perspective, the recent events, the current formation forming, what to expect the next times and possible confirmational scenario. NZDUSD move in a protracted uptrend which is currently showing weakening signs where it is also approaching resistance in higher timeframes and forming bearish reversal signs, in this case, I detected some important signals in consideration if NZDUSD forms a solid reversal or continues with its established but weakening uptrend where a bearish breakout can be definitely in consideration if NZDUSD also confirms this rightful in the schedule.

Looking at my chart you can watch that NZDUSD is trading in this huge possible rising-triangle-formation marked with the grey rising trendlines where it consolidates to the top of this formation which currently gets narrower and narrower. Furthermore, the 20-EMA you can watch marked in red holding this structure still to the upside which is building together with the lower boundary of the formation coherent support which when broken to the downside confirms the overall rising-triangle-formation and shows a decent set up like you can watch it marked in my chart. When this scenario plays out there is a high possibility given that NZDUSD continues bearish to the downside until the next remaining support locks up.

Such formation can be traded in two ways, once it is an aggressive immediate entry in the triangle formation and secondly it is the conservative approach waiting till the formation has finally confirmed. Although the immediate approach is also possible here the conservative will be smarter as the confirmation provides a high possibility setup. Currently, it is possible that NZDUSD invalidates the triangle formation and breaks to the upside but this possibility is very very marginal therefore the bearish scenario is what should be more considered here. When this plays out it will be highly interesting what NZDUSD will do at remaining lower support in the structure which is firstly the blue 200-EMA marked in my chart.

In this manner, thank you for watching, support for more market insight and have a good day!
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Information provided is only educational and should not be used to take action in the markets.

Comment:

ANALYSIS UPDATE: NZDUSD completed the bearish ascending triangle to reach out to the projected target zones.

Since NZDUSD continued with the determined price action it continued with further trend dynamic accelerations.