NZDUSD has formed a 100 score bearish engulfing short setup on the daily time frame. After forming a head & shoulders pattern, price shot up above the right shoulder, breaking strongly out of the upper Bollinger Band, and was quickly rejected forming a bearish engulfing. A strong previous downtrend, a bearish engulfing on the daily and monthly time frames, and a very strong upper Bollinger Band outbreak confirm this setup. 1:11 Risk to reward ratio. SL set above bearish engulfing high. TP set above strong support near previous lows. I will include the monthly point of view in the comments below.
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Monthly POV:
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The daily and monthly charts look very similar. They both have very strong previous downtrends which indicates that more downside is very likely. Bearish engulfing candles closed on daily and monthly time frames.
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Still holding short. Dropping as expected. Currently +217 pips in profit.
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Resistance broken! Another bearish engulfing is forming on daily time frame.