NZDUSD | Perspective for the new week | Follow-up detail
Following the fulfilment of a 120pips move in our direction (see link below for reference purposes), we witnessed a correction back into our precious key zone @ $0.71000 - a significant zone (Neckline of Double Top pattern on the weekly chart) for sellers with another opportunity to short the Kiwi against the Dollar in the coming week.
As the Kiwi continues to trade below $0.70000 after US inflation data, I anticipate a further breakdown of demand level in the coming week after observing the rate at which sellers continue to push the price down into the middle of the rectangle thereby revealing weakness in the value of the Kiwi ahead of US Nonfarm payrolls.
Tendency: Downtrend (Bearish)
Structure: Supply & Demand | Channel (Bearish rectangle)
Observation: i. Price has been caught within a 130pips range since mid - June 2021 to form a Bearish rectangle pattern.
ii. The price appears to have paused during a strong downtrend and temporarily keeps bouncing between two parallel levels $0.70500/0.69000 in the last 40days with anticipation of a trend continuation in the nearest future.
iii. The appearance of a Bearish rectangle at this juncture in the market might be seen as a bearish continuation pattern with extension into a 61.8/78.6% retracement of Impulse leg on the weekly chart (see weekly chart below for reference purposes).
iv. Price action has been at Key level @ $0.71000/0.70000 been at the Neckline of a Double Top pattern cited on the weekly chart (see chart below) is also a feat suggesting bearish possibilities.
v. In this regard and considering the bullish expectation in the long term perspective, our confirmation shall remain below Key level to be confident in this trade with opportunities to add position at break down of Demand zone... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 200 pips.
Risk/Reward: 1:4.5
Potential Duration: 4 to 8days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
As the Kiwi continues to trade below $0.70000 after US inflation data, I anticipate a further breakdown of demand level in the coming week after observing the rate at which sellers continue to push the price down into the middle of the rectangle thereby revealing weakness in the value of the Kiwi ahead of US Nonfarm payrolls.
Tendency: Downtrend (Bearish)
Structure: Supply & Demand | Channel (Bearish rectangle)
Observation: i. Price has been caught within a 130pips range since mid - June 2021 to form a Bearish rectangle pattern.
ii. The price appears to have paused during a strong downtrend and temporarily keeps bouncing between two parallel levels $0.70500/0.69000 in the last 40days with anticipation of a trend continuation in the nearest future.
iii. The appearance of a Bearish rectangle at this juncture in the market might be seen as a bearish continuation pattern with extension into a 61.8/78.6% retracement of Impulse leg on the weekly chart (see weekly chart below for reference purposes).
iv. Price action has been at Key level @ $0.71000/0.70000 been at the Neckline of a Double Top pattern cited on the weekly chart (see chart below) is also a feat suggesting bearish possibilities.
v. In this regard and considering the bullish expectation in the long term perspective, our confirmation shall remain below Key level to be confident in this trade with opportunities to add position at break down of Demand zone... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 200 pips.
Risk/Reward: 1:4.5
Potential Duration: 4 to 8days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Comment:
Breakdown of NECKLINE expectation found on Weekly chart
Comment:
**Typographical error
Trading plan: SELL confirmation with a minimum potential profit of 200 pips.
Trading plan: SELL confirmation with a minimum potential profit of 200 pips.
Trade smart. Trade consciously
