NZDUSD could be ready to resume the overall bearish trend.
Starting from the higher time frame, the price has retested a major long-term trend line for the overall bearish trend. The NZDUSD has retested this trend line several times in the past weeks, but failed to break and hold above. Last week test was also rejected, where the price formed a shooting star candlestick pattern.
On the daily chart, the pair has retested the latest swing highs at 0.6750 but failed to break. Meantime, the latest rally completed a retest to the previously broken rising trend line shown on chart.
The price has formed a bearish engulfing candlestick pattern on Friday, to close the week back below the 200-days simple moving average.
Trade Levels: Short at: 0.6650 // Target 1: 0.6540 // Target 2: 06430 // Stop loss : 0.6750. Average risk-reward for the trade is approximately 1.65.
Make sure to read the trading rules below:
1. Maximum risk per trade is 3% of capital. Typically around 2%.
2. Trades are taken in two units.
3. Two targets for each trade. First unit would be closed at first target .
4. After closing first unit at first target, Stop loss will be moved to entry point for the second unit.
5. Second unit would be closed at second target.
6. If first target is reached without triggering entry I cancel the trade.
7. If first target is reached I move stop loss to break-even.
8. Remember: Losing is a main part of the game.
Disclaimer: All trade ideas are hypothetical and only for illustration and educational purposes.
Technical Analysis Position and Developments
Starting from the higher time frame, the price has retested a major long-term trend line for the overall bearish trend. The NZDUSD has retested this trend line several times in the past weeks, but failed to break and hold above. Last week test was also rejected, where the price formed a shooting star candlestick pattern.
On the daily chart, the pair has retested the latest swing highs at 0.6750 but failed to break. Meantime, the latest rally completed a retest to the previously broken rising trend line shown on chart.
The price has formed a bearish engulfing candlestick pattern on Friday, to close the week back below the 200-days simple moving average.
Trade Levels: Short at: 0.6650 // Target 1: 0.6540 // Target 2: 06430 // Stop loss : 0.6750. Average risk-reward for the trade is approximately 1.65.
Make sure to read the trading rules below:
1. Maximum risk per trade is 3% of capital. Typically around 2%.
2. Trades are taken in two units.
3. Two targets for each trade. First unit would be closed at first target .
4. After closing first unit at first target, Stop loss will be moved to entry point for the second unit.
5. Second unit would be closed at second target.
6. If first target is reached without triggering entry I cancel the trade.
7. If first target is reached I move stop loss to break-even.
8. Remember: Losing is a main part of the game.
Disclaimer: All trade ideas are hypothetical and only for illustration and educational purposes.
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. thefxchannel.com and the Authors will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
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