Hello Traders,
Here is the Top-Down Analysis of NZDUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 43 - 20 Oct
M > Market is moving in a downward channel. Price broke out of channel to test monthly resistance level. This level previously pushed price to downside and we expect price to get pushed down again.
W > Price moved out of channel creating HH and HL, after rejection at resistance level price made an attempt to drop down but was unable to break support created by last HL, this also coincided with top of channel acting now as support.
D > Price moved up in a rising channel creating and respecting W and M formations. Price dropped out of channel and started moving upwards creating HH and HL in another channel. Price is now testing bottom of this channel, a level that also coincides with previous resistance as well as support. We are aware that support created by top of monthly channel is now a big task for revalidation of our expectation from monthly chart. Price can drop creating a new LL and testing top of channel as support. This can push price to the upside. Price will have to break this level to further continue with bearish move.
As per COT NZD saw addition of both Long and Short further increasing net positions, confirming further improved strength of ZXY for the said week. ZXY however weakened last week.
ZXY has been gaining strength slowly since June 2020 supporting our expectation for Short but now DXY is also making effort to recover. Hence we need to be cautious while taking Short trade.
4H > We can see an M formation in D and 4H chart, its is possible for price to move up to test the neck of M before continuing further with bearish move. We need to wait for price to break channel support and return back for retest. Hence we will suggest taking short trade only after break of demand zone at 0.654.
Pair Correlation > Pair has a positive correlation with AUDJPY, AUDUSD, NZDJPY and AUDCHF and negative correlation with USDCAD and EURAUD.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of NZDUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 43 - 20 Oct
M > Market is moving in a downward channel. Price broke out of channel to test monthly resistance level. This level previously pushed price to downside and we expect price to get pushed down again.
W > Price moved out of channel creating HH and HL, after rejection at resistance level price made an attempt to drop down but was unable to break support created by last HL, this also coincided with top of channel acting now as support.
D > Price moved up in a rising channel creating and respecting W and M formations. Price dropped out of channel and started moving upwards creating HH and HL in another channel. Price is now testing bottom of this channel, a level that also coincides with previous resistance as well as support. We are aware that support created by top of monthly channel is now a big task for revalidation of our expectation from monthly chart. Price can drop creating a new LL and testing top of channel as support. This can push price to the upside. Price will have to break this level to further continue with bearish move.
As per COT NZD saw addition of both Long and Short further increasing net positions, confirming further improved strength of ZXY for the said week. ZXY however weakened last week.
ZXY has been gaining strength slowly since June 2020 supporting our expectation for Short but now DXY is also making effort to recover. Hence we need to be cautious while taking Short trade.
4H > We can see an M formation in D and 4H chart, its is possible for price to move up to test the neck of M before continuing further with bearish move. We need to wait for price to break channel support and return back for retest. Hence we will suggest taking short trade only after break of demand zone at 0.654.
Pair Correlation > Pair has a positive correlation with AUDJPY, AUDUSD, NZDJPY and AUDCHF and negative correlation with USDCAD and EURAUD.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
