NZDJPY: FOLLOWING the DESCENDING CHANNEL
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🟢Forex Pair:
NZD/JPY
⚪Technical Analysis:
Let's start talking about the weekly perspective, since the end of March 2020, the price has been moving following a clear rising wedge, getting strong rejections on its S/R dynamic pattern's line.
One week ago the price reached its dynamic resistance and it started falling down.
In the daily chart the price is still moving with a strong uptrend, it actually is getting a short correction and this is absolutely possible if you consider that a strong impulse started at the beginning of November 2020, once the price reached the dynamic pattern's level.
In the h4 chart we can see that the price got its last bullish impulse on 23th of December, completed on the 8th of January 2021 once it reached and bounced on the weekly dynamic resistance.
Since that moment the price has been moving in a new downtrend, following a clear descending channel.
The price has just broken a daily support and it's now approaching to reach the next weekly support level.
The next price action it will be essential to understand the next market movement.
🔴Conclusion: ❌
The price is still moving with a bearish movement and I'm confident to see the price reaching the weekly support level. That zone is personally really interesting because it's a strong weekly area that rejected the price many times in the past and also it's about the 0.50% of Fibonacci retracement of the main bullish impulse.
After that I'll start looking for a long position once the price will break the descending channel.
As a trend follower, I wouldn't suggest to you to get any long position right now, instead you should wait the breakout of the descending channel.
Stay tuned for Updates and Trading Signals!
What's your opinion? Share your idea writing a comment!
Trade Safe and Responsibly,
Gianni
🟢Forex Pair:
NZD/JPY
⚪Technical Analysis:
Let's start talking about the weekly perspective, since the end of March 2020, the price has been moving following a clear rising wedge, getting strong rejections on its S/R dynamic pattern's line.
One week ago the price reached its dynamic resistance and it started falling down.
In the daily chart the price is still moving with a strong uptrend, it actually is getting a short correction and this is absolutely possible if you consider that a strong impulse started at the beginning of November 2020, once the price reached the dynamic pattern's level.
In the h4 chart we can see that the price got its last bullish impulse on 23th of December, completed on the 8th of January 2021 once it reached and bounced on the weekly dynamic resistance.
Since that moment the price has been moving in a new downtrend, following a clear descending channel.
The price has just broken a daily support and it's now approaching to reach the next weekly support level.
The next price action it will be essential to understand the next market movement.
🔴Conclusion: ❌
The price is still moving with a bearish movement and I'm confident to see the price reaching the weekly support level. That zone is personally really interesting because it's a strong weekly area that rejected the price many times in the past and also it's about the 0.50% of Fibonacci retracement of the main bullish impulse.
After that I'll start looking for a long position once the price will break the descending channel.
As a trend follower, I wouldn't suggest to you to get any long position right now, instead you should wait the breakout of the descending channel.
Stay tuned for Updates and Trading Signals!
What's your opinion? Share your idea writing a comment!
Trade Safe and Responsibly,
Gianni
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