I'm currently short on NZDUSD but after 2 days of remarkable downside the pair seems to be sitting in a similar price range that we saw between the 21st & 24th of March and I'm wondering if a head & shoulders pattern could be forming.
Of course I may be wrong but I wanted to share this view. I'm still bearish on the pair near-term but want to keep an objective opinion.
Additionally, this is a technical view; with NFP tomorrow I am bullish on the USDOLLAR so we could see a big 40-50 pip drop, but I don't want to speculate too heavily on news!
Comments
ElPatron.Y
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Absolutely PERFECT
mattlowden
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Thanks mate :) Was an absolute gift of a trade that kept giving for about 12 months!
ElPatron.Y
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These trades happen once in a couple of years so don't lose what you made !
mattlowden
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You're quite right. Had a similar trade on AUDUSD but these positions take time to find, build and then pan-out, but they're worth it. Just not as exciting as day-trading :)
motleifaul
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Seems you may be right with your idea.
mattlowden
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Could be, seems to have gone a little bit further than I'd anticipated but we'll know for sure this time tomorrow =)
fximperija
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When it comes to the H/S pattern, a very important element is the neck line.If PA bounces of the neck line forming a lower high and show signs of ret. we can recognize a H/S pattern. An aggressive entry would be at the top of the lower high trailing the PA to neck line. Moving SL to BE is advised if PA holds at neck line and bounces back thus creating a range move in channel. Only if the neck line is breached we have a classic H/S pattern with PA dropping lower to the next significant res. at structure.
Kiwi could behave pretty much like Euro on NFP meaning, shooting straight up proving the construction of H/S or dropping w/o creating a lower high.
This is highly speculative, I wouldn't take the possible H/S into consideration before a new lower high emerges on chart.
mattlowden
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Thanks for the feedback - I shall bear this in mind next time I'm looking at a H&S patter!