First and foremost, Happy New Year!
NZDUSD has formed a triangle after breaking the strength - It has also maintained it's current strength in the process. I will be looking for Buys immediately to start the new year off (provided there are little to no gaps in price) - Confirmation will come with a close above the triangle pictured.
As long as we stay above the solid blue line (the weekly strength) you should remain for the near term - even more so that we stay above the current strength pictured. Both of those together and there is no reason to be looking for 1-4 hour sells without associating them with high risk.
Targets for moves right now will sit between .69 and .71. Should we reach .71000 area I'll make another post looking for selling opportunities. This is the maximum level of the current overall strength and would furthermore confirm the that NZDUSD is actually preparing for a sharp move soon™
A close below the overall strength pictured is a very good reason to be short. Anything in between the two is a little bit of a grey area at the current moment.
To help you visualize the current here's the chart with expectations
If you have questions or comments, please I encourage them. Let's make everyone a successful trader this year! Don't forget to Like/Follow/Comment!
And this is the same TL drawn in the arithmetic scale:
Personally, I always use a semilog scale for better reliability. Moreover, I think the breaking of the TL cannot be relied even in the arithmetic scale because of the low volume of the last 5 days.
On the arithmetic scale, the trend line is designed to extrapolate support and resistance levels.
On the log scale, the trend line is used for the purpose of slope and rate of change of the price.
When log scales are used, the support and/or resistance points in channels are often skewed.
FX tends to move in channels. Be careful