1.Overall bearish trend on this pair.
2. Recent 4H price moving in a range as seen by flat 50sma and price has bounced off the upper bollinger band.
3. Inside bars x 2 have formed indicating tight consolidation.
4. Likely movement bearish from here.
5. Stochastic showing bearish divergence.
6. Risk Reward 1:2.05
This is based more on chart reading for EURUSD and NZDUSD separately. The euro is showing much more strength.
The EURNZD chart is showing a rising 50 period bollinger band with the 4H bars consolidating above the 50sma.
The idea is that when this consolidation explodes, it is likely to move up and hit target quickly.
Risk: Reward is 1.7 approximately. So not too bad.
4H CHART SHOWS PRICE RETRACED TO LONGER TERM TRENDLINE, MOVING IN A CHANNEL
PRICE HAS SHOWN A REJECTION OF THIS TRENDLINE ON THURSDAY LAST WEEK
TODAY, A BULLISH PIN BAR REJECTION IS THE SECOND SIGNIFICANT REJECTION OF THIS TRENDLINE
THE LONG TRADE IS IN LINE WITH THE LONG TERM BULL TREND
4H GBPUSD CHART IN A RANGE
PRICE AT UPPER EXTREME WITH A BEARISH DIVERGENCE ON STOCHASTIC
PRICE HAS RETRACED TO TRENDLINE AND SHOWS REJECTION OF THAT
PRICE HAS FALLEN OUT OF A COUNTER-TREND CHANNEL, GOING DOWN
RISK : REWARD = 2.84
1.CLEAR DOWN TREND : THEREFORE LOOKING FOR SHORTS ONLY
2. AFTER AN INSIDE BAR SHOWING CONSOLIDATION, YESTERDAY WAS AN OUTSIDE BAR WITH A BEARISH CLOSE.
3. YESTERDAY'S CANDLE SHOWS A LONGISH WICK AT THE TOP SHOWING REJECTION OF HIGHER PRICES
4. STOP ABOVE YESTERDAY'S CANDLE.
5. TARGET 0.8140
6. ALTHOUGH RISK REWARD IS 1:1, THE LIKELIHOOD OF SUCCESS IS HIGH.
Retest of resistance is imminent now. Blind entry for short trade in place (sell limit order). Looking at 300+ pips of profit.
For those who are more cautious, a 4 Hour pin bar or engulfing bar at this resistance level would be a good signal to go short.
Risk 100 pips
Reward 300 pips