NZD/USD: upcoming DOWNWARD Impulse!
What’s up guys and welcome to my profile, my name is Gianni and today I’m going to analyse the NZD/USD, trying to translate the market information with a full technical analysis on different time frames perspectives.
For a better understand of my short BIAS, let’s have a quick look on the monthly timeframe:
During the previous month, the market performed a really strong bearish movement, and it’s currently approaching on a solid level of support, that rejected the price many times during the past years.
The market is still bearish and there is not yet a sign of rejection but still, there is a possibility of a retracement, in a short future, as a “breath” of this huge and clear bearish impulse, with a good chance of market continuation.
Switching on the weekly timeframe:
The market is clearly following a descending channel and focusing on the last two red candles, with the second one definitely smaller than the previous one, it’s a sign that the market is losing momentum.
The current candle is actually moving in the opposite direction of the trend, but still early to say where it will close the price, considering that there are still 3 days of market activity.
Let’s have a look now on the daily timeframe:
After the last strong bullish impulse (see the first green arrow), the market started consolidating between the resistance and support zone, with no strength enough to push the price above the previous HH. That was the first clue of change of bias from uptrend to neutral.
The last bearish impulse broke the previous lower low and the support zone of the market consolidation, the reason I believe the market will continue to the downside!
Finally back to the h4 timeframe:
As you can see in the chart, the market is currently moving inside a descending channel and before to plan my short position on this trade I will be waiting for a good entry point with a RRR 1:2 or greater.
In the scenario of retracement instead, I will be waiting for the price to break the support zone and then I will plan my short trade on the restest of the same level.
If you enjoy this trade idea, support my work with a thumb up and don’t forget to follow my profile for more detailed technical analyses!
Trade safe and responsibly,
Gianni
DISCLAIMER
Please note the views are not investment advice and should be used only for educational purpose
For a better understand of my short BIAS, let’s have a quick look on the monthly timeframe:
During the previous month, the market performed a really strong bearish movement, and it’s currently approaching on a solid level of support, that rejected the price many times during the past years.
The market is still bearish and there is not yet a sign of rejection but still, there is a possibility of a retracement, in a short future, as a “breath” of this huge and clear bearish impulse, with a good chance of market continuation.
Switching on the weekly timeframe:
The market is clearly following a descending channel and focusing on the last two red candles, with the second one definitely smaller than the previous one, it’s a sign that the market is losing momentum.
The current candle is actually moving in the opposite direction of the trend, but still early to say where it will close the price, considering that there are still 3 days of market activity.
Let’s have a look now on the daily timeframe:
After the last strong bullish impulse (see the first green arrow), the market started consolidating between the resistance and support zone, with no strength enough to push the price above the previous HH. That was the first clue of change of bias from uptrend to neutral.
The last bearish impulse broke the previous lower low and the support zone of the market consolidation, the reason I believe the market will continue to the downside!
Finally back to the h4 timeframe:
As you can see in the chart, the market is currently moving inside a descending channel and before to plan my short position on this trade I will be waiting for a good entry point with a RRR 1:2 or greater.
In the scenario of retracement instead, I will be waiting for the price to break the support zone and then I will plan my short trade on the restest of the same level.
If you enjoy this trade idea, support my work with a thumb up and don’t forget to follow my profile for more detailed technical analyses!
Trade safe and responsibly,
Gianni
DISCLAIMER
Please note the views are not investment advice and should be used only for educational purpose
Komentarz:
The market is still in consolidation phase!
