LoneWolfCapital

The Perfect Storm - NZD/USD

Short
FX:NZDUSD   New Zealand Dollar / U.S. Dollar
The NZD/USD has been in a significant downtrend since July of 2014 as the USD strength continues to rule the FX Market.

We have seen quite a dramatic pullback within the NZD/USD that has now set us up for an excellent selling opportunity to trade back in line with the overall downtrend.

We have 8 factors of confluence on the daily chart that support a bearish bias.

1. Trading With The Trend
2. Pinbar Sell Signal
3. Double Top Formation
4. Rejection of 50 EMA
5. Rejection of .5-.618 Fib Retracement
6. Rejection of Key Resistance at .7600 (Previous Key Support)
7. Rejection of Descending Channel Trendline
8. Bearish Wedge Continuation Pattern

We have two entry options available to use, both offering great risk-reward ratios.

I expect this market to breakdown and target the next KEY weekly support at 72 cents. Breaking below 72 cents opens up the gates for 70 cents as the next downside target.

Comments

Great analytic style, keep it up, mate!
+1 Reply
LoneWolfCapital HamedAghajani
Thank you @HamedAghajani!! I appreciate the support!
Reply
Master analysis as always!
+1 Reply
LoneWolfCapital jarden.torcuato
Thanks Jarden! Enjoy the weekend and we will get back at it on Monday!
Reply
Very good analyze, Thank you and good luck
+1 Reply
Thank you vila! Pretty quiet day to end the week, but my bias still remains bearish. I will be back at market open next week! Have a great weekend!
Reply
vila LoneWolfCapital
You too
+1 Reply
Great analysis but seems to be stopped out before price went down per your expectation. Don't understand why you chose 0.7590, instead of above pin's high, which will also be above the key resistance (0.7600) you identified. Just curious.
Reply
Price made it down to 0.72. That's where I tool profit on thIs trade just before it rallied back up. made almost 10% on this one.
Reply
Casey_Yeo jarden.torcuato
Good for you. I'm more curious about the stop loss location in ActiveTrader's analysis above, nothing else.
+1 Reply
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