NZDUSD | Perspective for the new weekIt is fascinating to see how the Key level @ $0.71600 appears to be a decision-maker for traders in the last 30days as Breakdown/Breakout of this level points at the prevailing direction of the price. Looking beyond this... We are now at a juncture in the market where the chart formation that predicts a bullish-to-bearish trend reversal becomes a unique tool for us to make a trading decision.
On the chart is a baseline with three peaks, with the outside two close in height and the middle is highest (Head and Shoulder).
Tendency: Downtrend ( Bearish )
Structure: Reversal pattern (H & S) | Breakdown | Supply & Demand
Observation: i. After making a peak @ $0.73100, Price have continue to risk further decline as it keeps finding Lower Lows.
ii. A significant breakdown of my Key Level @ $0.71600 (Neckline) last week confirms the completion of a Head and Shoulder pattern.
iii. My attention in the coming week shall be shifted to Selling opportunities and the Neckline area shall be the risk limit.
Trading plan: SELL confirmation with a minimum potential profit of 200 pips.
Risk/Reward : 1:5
Potential Duration: 5 to 10 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
