Hello Traders,
Here is the Top-Down Analysis of NZDUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 44 - 27 Oct
M > Market is moving in a downward channel. Price broke out of channel to test monthly resistance level. This level previously pushed price to downside and we expect price to get pushed down again.
W > Price moved out of channel creating HH and HL, after rejection at resistance level price made an attempt to drop down but was unable to break support created by last HL, this also coincided with top of channel acting now as support.
D > Price moved up in a rising channel creating and respecting W and M formations. Price dropped out of channel and started moving upwards creating HH and HL in another channel. Price is now testing top of channel as resistance and we expect drop to the downside. We are aware that support created by top of monthly channel is now a big task for revalidation of our expectation from monthly chart. Hence we will set 3 bearish targets as off now.
1. Support of new channel
2. Daily demand zone
3. Top of monthly channel
As per COT NZD saw closure of both Long and Short positions further improving net positions, whereas ZXY was weak during the said week but it gained strength last week.
NZD has been gaining strength slowly since June 2020 hence price can continue to rise up to test monthly resistance again. For bearish move we must see addition of short positions and USD must gain some strength.
4H > We can see rejection wicks that price has made at top of channel on each occasion, price is currently continuing to make HH and HL and has reached top of channel testing it as resistance. We can see rejection wick and loss of momentum as initial sign for reversal. We will wait for reversal confirmation to take short.
Invalidation > In the event price breaks channel to the upside beyond a fake brake out and fails to reverse this analysis will get invalidated.
Pair Correlation > Pair has a positive correlation with NZDJPY and negative correlation with EURNZD.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of NZDUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 44 - 27 Oct
M > Market is moving in a downward channel. Price broke out of channel to test monthly resistance level. This level previously pushed price to downside and we expect price to get pushed down again.
W > Price moved out of channel creating HH and HL, after rejection at resistance level price made an attempt to drop down but was unable to break support created by last HL, this also coincided with top of channel acting now as support.
D > Price moved up in a rising channel creating and respecting W and M formations. Price dropped out of channel and started moving upwards creating HH and HL in another channel. Price is now testing top of channel as resistance and we expect drop to the downside. We are aware that support created by top of monthly channel is now a big task for revalidation of our expectation from monthly chart. Hence we will set 3 bearish targets as off now.
1. Support of new channel
2. Daily demand zone
3. Top of monthly channel
As per COT NZD saw closure of both Long and Short positions further improving net positions, whereas ZXY was weak during the said week but it gained strength last week.
NZD has been gaining strength slowly since June 2020 hence price can continue to rise up to test monthly resistance again. For bearish move we must see addition of short positions and USD must gain some strength.
4H > We can see rejection wicks that price has made at top of channel on each occasion, price is currently continuing to make HH and HL and has reached top of channel testing it as resistance. We can see rejection wick and loss of momentum as initial sign for reversal. We will wait for reversal confirmation to take short.
Invalidation > In the event price breaks channel to the upside beyond a fake brake out and fails to reverse this analysis will get invalidated.
Pair Correlation > Pair has a positive correlation with NZDJPY and negative correlation with EURNZD.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
