Short NZDUSD for Bear Continuation pattern
Updated
As can be seen from the chart,
NZDUSD has formed a flag within a larger bearish downtrend - and hence seems to be a bear flag formation, targeting the length of the flag stick at around 0.71 levels.While the ideal entry point should be closer to the 7280 region, we are initiating a short position with 50% capital at current levels of ±0.7245 and leaving a limit for the balance 50% at 0.7275, targeting 0.7110. The stop-loss for the trade would be beyond the supply zone between 7280 and 7300 at 0.7310.
Sell Entry : 0.7245 (with another sell order at 0.7275)
Target : 0.7110
Stop : 0.7310
Trade closed: stop reached
NZD pushed higher and took out our stop at 0.7310
However, as can be seen from the above chart, we are still in the bear flag formation, so have re-entered the trade at 0.7310 and moved stop to 0.7365
Trade active
Good thing we continued with the idea. The decisive break of the flag occurred with the CPI print, and now we are surely headed lower...
Trade closed: stop reached
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