I will explain in this chart how I am planning a long trade for the NZD.
Starting off with the weekly chart, I see a decline to value in NZDUSD, right to the psychological level of 0.7. The Force Index is oversold in an uptrend, this is the time to buy.
Going on to the daily chart, I can see a double bottom formation in a bigger H&S formation. When H&S do not break below the neckline, they are bullish formations. Note that a strong close today will form a bullish divergence on the MACD.
The 4H chart shows a class A bullish divergence both on the MACD lines and histogram. I've been waiting all day on Friday for a close above 0.703 to signal the entry, without any luck. Today though, it finally happens.
I have been long this pair for a couple of weeks now, I added on my position on this close on the 4H chart, and I will add at the end of the day if I see a strong close. Soft stop as always below the swing low at 0.70. As for targets, well for starters I would say 0.75.
Keep in mind that the dollar index is probably in the midst of a major false breakout above 100, a historically important level.
Starting off with the weekly chart, I see a decline to value in NZDUSD, right to the psychological level of 0.7. The Force Index is oversold in an uptrend, this is the time to buy.
Going on to the daily chart, I can see a double bottom formation in a bigger H&S formation. When H&S do not break below the neckline, they are bullish formations. Note that a strong close today will form a bullish divergence on the MACD.
The 4H chart shows a class A bullish divergence both on the MACD lines and histogram. I've been waiting all day on Friday for a close above 0.703 to signal the entry, without any luck. Today though, it finally happens.
I have been long this pair for a couple of weeks now, I added on my position on this close on the 4H chart, and I will add at the end of the day if I see a strong close. Soft stop as always below the swing low at 0.70. As for targets, well for starters I would say 0.75.
Keep in mind that the dollar index is probably in the midst of a major false breakout above 100, a historically important level.