NZDUSD Weekly S/R|200DMA|Broadening Wedge .618 Fib|Bearish PA
Evening Traders,
Today’s Analysis – NZDUSD- trading in an Ascending Broadening Wedge with bearish price action, a retest of Weekly S/R likely.
Points to consider,
- Bearish Structure (H&S Pattern)
- .618 Fibonacci Resistance
- Weekly S/R Support (200DMA Confluence)
- RSI Bullish Divergence
- Stochastics Buy Cross
- Volume Declining
The current price action for NZDUSD is bearish representing the psychology of a head and shoulders pattern. The larger formation, the Ascending Broadening Wedge has a higher probability of breaking down. This allows us to have a bearish bias on the market.
The immediate price action has a bullish divergence playing out as indicated by the RSI and the buy cross on the Stochastics. Price is likely to respect resistance from the .618 Fibonacci to complete a probable right shoulder.
Weekly S/R is current macro support with the 200 DMA in confluence; price is likely to come for a back test ad hold of this level.
The volume profile is currently declining, indicative of an influx when key trade locations are tested, especially Weekly S/R levels.
Overall, in my opinion, NZDUSD needs further development in price action before any valid short entries. Price action is to be monitored upon discretion when placing trades.
Hope this analysis helps
Thank you for following my work!
And remember,
“Dangers of watching every tick are twofold: overtrading and increased chances of prematurely liquidating good positions” – Jack Schwager
Today’s Analysis – NZDUSD- trading in an Ascending Broadening Wedge with bearish price action, a retest of Weekly S/R likely.
Points to consider,
- Bearish Structure (H&S Pattern)
- .618 Fibonacci Resistance
- Weekly S/R Support (200DMA Confluence)
- RSI Bullish Divergence
- Stochastics Buy Cross
- Volume Declining
The current price action for NZDUSD is bearish representing the psychology of a head and shoulders pattern. The larger formation, the Ascending Broadening Wedge has a higher probability of breaking down. This allows us to have a bearish bias on the market.
The immediate price action has a bullish divergence playing out as indicated by the RSI and the buy cross on the Stochastics. Price is likely to respect resistance from the .618 Fibonacci to complete a probable right shoulder.
Weekly S/R is current macro support with the 200 DMA in confluence; price is likely to come for a back test ad hold of this level.
The volume profile is currently declining, indicative of an influx when key trade locations are tested, especially Weekly S/R levels.
Overall, in my opinion, NZDUSD needs further development in price action before any valid short entries. Price action is to be monitored upon discretion when placing trades.
Hope this analysis helps
Thank you for following my work!
And remember,
“Dangers of watching every tick are twofold: overtrading and increased chances of prematurely liquidating good positions” – Jack Schwager