#NZDUSD bearish possibility move

mohemati Updated   
FX:NZDUSD   New Zealand Dollar / U.S. Dollar
We can see price reaching out to the daily timeframe bearish channel upper line, which potentially can act as resistance for the price.

Additionally, we can spot the formation of a rising wedge pattern in the chart, which is intrinsically bearish and is regarded as a reversal formation in an uptrend.

Another factor indicating the loss of bullish momentum is the decrease in cycle amplitude. A decrease in cycle amplitude in an uptrend is an early indication that there may potentially be underling weakness. (use 4 hour time frame chart for this.)

Moreover, we have a static resistance area that previously acted as support and resistance for the price, making it an important area to observe for price reactions.

It's crucial to note that any breakout from the upper side of the rising wedge pattern or the bearish channel would invalidate this analysis.

For taking a position any breakout from below the rising wedge or changing market structure in 4-hour time frame could give us the entry trigger.

If you've found this analysis helpful, please take a moment to like, comment, or share your thoughts with me.
Order cancelled:
Price broke above a wedge formation as well as bearish channel and invalidated our trading idea.


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