NZDUSD - Ascending channel suggesting a descent
After a nose dive on NZDUSD, an ascending channel with trendlines 'AC' has formed on the pair with price leading up to the previous resistance.
The current rejection off the previous resistance which also intersects the ascending channel's upper line shows the strength of the bears on the pair.
The classic result of an ascending channel is a break towards the down side on any kind of instrument. However to confirm further, lets consider price action and draw line parallel to the channel right in the middle of the channel. Now taking a look at the price action, it seems the pair has spent a lot of time in the lower half of the channel with constant strong rejections of the channel's upper line giving a short signal on the pair in the following hours.
Short the pair on the break towards the downside with stops right above the mid point of the channel and targets equal to the length of the channel below the point of breakout.
* Aggressively, I have taken the position at the break of the mid line of the channel. I was way into profit by the time I published this post. :D
The current rejection off the previous resistance which also intersects the ascending channel's upper line shows the strength of the bears on the pair.
The classic result of an ascending channel is a break towards the down side on any kind of instrument. However to confirm further, lets consider price action and draw line parallel to the channel right in the middle of the channel. Now taking a look at the price action, it seems the pair has spent a lot of time in the lower half of the channel with constant strong rejections of the channel's upper line giving a short signal on the pair in the following hours.
Short the pair on the break towards the downside with stops right above the mid point of the channel and targets equal to the length of the channel below the point of breakout.
* Aggressively, I have taken the position at the break of the mid line of the channel. I was way into profit by the time I published this post. :D