NZDUSD | Perspective for the new week | Follow-up detailsMy last speculation on this pair earned us over 200pips before the Bullish momentum began (see link below for reference purposes); Despite a long term Bullish perspective, I am beginning to see a short term opportunity to do a temporary sell on the Kiwi in the coming week as the Bears gear to step into the game.
Tendency: Downtrend (Bearish)
Structure: Supply & Demand | Reversal pattern (Double Top)
Observation: i. After breaking out of Double Bottom Neckline on the 14th of October 2021 (see daily chart), the Kiwi recorded a 3.42% growth over the Dollar to set the tone for a Bullish momentum in the long term.
ii. As it is now, it appears we are about to witness a correction phase into the Double Bottom Neckline (see daily chart) to incite a bullish trend continuation.
iii. Double Top: An extremely bearish technical reversal pattern forming after price tested a peak two consecutive times with a moderate decline between the two highs ($0.72100/0.71900) is an emphatic signal that awaits confirmation in the mode of a fall below the support level which is also equal to the low between the two prior highs (Neckline @ $0.71500).
iv. At this juncture, the Breakdown/Retest of the identified Neckline shall welcome an opportunity to open a position in the coming week.
v. In the midst of a potential Breakout/Retest of Neckline, there is a possibility that the price might do a climb to test the identified "New Supply level" within $0.71800/0.71500 in the early hours/days of the new week to incite further decline in price... Trade consciously!😊
Trading plan: SELL confirmation with a minimum potential profit of 150 pips.
Risk/Reward : 1:5
Potential Duration: 4 to 10days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks 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.
