We are currently in a very strong support zone, NZDUSD is indicating a possible long with multiple wick rejections. The bears are not giving up without a fight, so a 30 pip stop loss is relevant for a stop hunting that might take place.
Looking at the H4 chart, are seem to be on one big retracement level.
Being we are at a major price action price point, we will break under the M15 chart trend line. If that happens then we can start looking for possible short movement with the retest.
This is what we see in the EURUSD chart for the coming week.
We have seen rejection at the Monthly, Weekly and Daily Resistance. Which can only mean one thing, we are going strongly bearish this coming week.
Though there are two scenarios present, We can still be in a range in the H4 chart, or the hedges have drawn enough liquidity to continue the bearish...
Strong daily area of resistance has been reached, we can therefore anticipate a rejection on this zone even when going down to the H4 time frame.
As confirmation, we will wait for the rejection at resistance and a retest of the resistance on the H4 before we plot our entry to the down side.
We are looking to short the NDZ/CHF in the coming week, we however can't enter the trade out of our area of value.
We have shorting support from the M1,W1,D1 and entry on the H4 chart.
We wait for a retracement, a bearish close candle and go for our entry.
We have analyzed the monthly, weekly and the day chart which are all aligned for the perfect shorting trade.
We have to wait for the retest and wait for a rejection on the H4 chart strong resistance area for entry.
The risk to reward ratio on this trade is 3/1.