A strong trendline with multiple tests has broken to the downside for the Kiwi
Should follow the Aussie Dollar (my previous post, up +70 pips on the the Head and Shoulders + trendline break) into this bearish territory
Can be involved on the break, wait for a retest, or go to the lower timeframes for a bearish chart pattern entry signal
Manage your risk
Opportunity for bears as the HNS formation completed on the 1 hour.
The neckline is broken , you can enter now or wait for retest of the resistance area.
On the daily we also printed double doji candles in the overbought territory on the RSI - pointing to bearish price action.
This is one of my favorite setups on the 4H Chart.
We are looking for RSI divergence at extreme levels - must be oversold on both lows, and must have divergence. We then look at the fibonnaci inversion for entry points.